Ridiculous!” – Senate Slams NNPCL Over Alleged ₦210 Trillion Discrepancy

The Chairman of the Senate Committee on Public Accounts, Aliyu Wadada, has expressed dissatisfaction with the explanations provided by the Nigerian National Petroleum Company Limited (NNPCL) over alleged discrepancies amounting to ₦210 trillion in the company’s financial records.

According to Ireporter Online, Wadada made the remarks during an appearance on the television programme Sunday Politics aired on Channels Television, where he questioned the adequacy of the clarifications offered by the current management of the national oil company led by Group Chief Executive Officer Bayo Ojulari.

The lawmaker, who represents Nasarawa West Senatorial District in the 10th National Assembly, explained that the committee found the responses from the oil company unsatisfactory after reviewing its audited financial statements. He noted that the financial documents, which are expected to provide a comprehensive account of the company’s assets and liabilities, failed to give sufficient breakdowns for certain figures.

He pointed out that NNPCL listed ₦103 trillion as accrued expenses under liabilities without providing detailed explanations or itemised figures to justify how the amount was arrived at. According to him, the absence of supporting details makes the liability entry difficult to accept, stressing that financial records must be adequately substantiated to meet standard accounting practices.

Wadada further stated that the former Group Chief Executive Officer of the company, Mele Kyari, did not provide a defence of the ₦210 trillion claims while he was in office.

Reports indicate that the controversy emerged during the Senate committee’s review of NNPCL’s audited financial statements covering the period between 2017 and 2023. During the probe, lawmakers reportedly identified financial entries totalling ₦210 trillion which they said had not been clearly explained by the company.

Describing the figure as staggering, Wadada said the amount under scrutiny is difficult for any reasonable person to comprehend, emphasising that the magnitude of the number has raised serious concerns among lawmakers.

In response to the development, the committee has summoned former senior officials of the oil company, including Kyari, to appear before the panel and clarify the issues surrounding the financial entries.

The senator also explained that standard accounting procedures require that figures recorded as either assets or liabilities must pass through the profit and loss account before they can be properly recognised in financial statements.

He added that the committee has resolved to invite the former leadership of the national oil company to a public hearing where they will be required to provide detailed explanations regarding the controversial figures.

Wadada disclosed that the invitations would be issued through the office of the NNPCL Group Managing Director after the Eid celebrations, noting that the hearing is intended to address what the committee described as a controversial and ambiguous situation surrounding the company’s financial records.