The Senate Committee on Public Accounts, led by Senator Aliyu Wadada, has raised significant alarm over what it describes as deeply troubling financial inconsistencies within the Nigerian National Petroleum Company Limited (NNPC), amounting to trillions of naira.
During a probing session held on Wednesday, committee members reviewed NNPC’s audited financial statements covering the period from 2017 to 2023 and uncovered numerous discrepancies they deemed “mind-boggling and worrisome.”
The Chief Financial Officer of the company, Dapo Segun, was present at the session, where lawmakers questioned several unexplained financial entries. Chief among the concerns was the lack of detailed records justifying colossal legal and auditing fees, as well as glaring contradictions in declared receivables reportedly valued at over N210 trillion across the six-year period under review.
According to the panel, legal fees were listed in the statements without any supporting information about the nature of legal services rendered, while the auditors’ fees were also included without a clear rationale or documentation. “Legal fees were accrued without any explanation or documentation regarding the legal services rendered.
The auditors’ fees raise similar questions. There are no clear justifications. Everything we’ve seen and heard from the audited financial statements is troubling,” the committee noted during the session.
Senator Wadada emphasized that the discrepancies, particularly those related to receivables, were of serious concern to the committee. “Trillions of naira are in question, and the new document they presented this afternoon doesn’t match what’s already in their audited report.
It’s completely independent and contradictory,” he remarked. He stressed that the inconsistencies are not based on speculation but are instead derived from a thorough examination of the financial records NNPC itself submitted.
In response to the irregularities, the Senate committee issued 11 formal queries to NNPC’s finance team, demanding comprehensive answers within one week. The committee made it clear that the issue will not be ignored or buried, especially as President Bola Tinubu’s administration has made transparency and fiscal accountability central to its Renewed Hope agenda.
Senator Wadada reiterated the importance of transparency, noting, “We will not sweep this matter under the rug. The v is committed to transparency, and this committee will ensure that public finances are properly accounted for.”
In a related development, the Sole Administrator of Rivers State, retired Admiral Ibok-Ete Ibas, is set to appear before the Senate Ad-Hoc Committee on the Rivers State Emergency Rule.
He will be required to explain the proposed N1.48 trillion budget for the state’s 2025 fiscal year. This engagement is part of the Senate’s broader efforts to enforce accountability at all levels of government.
As the investigation into NNPC’s financial practices continues, observers await further revelations that could have wide-reaching implications for Nigeria’s public finance management, especially in a sector as vital as oil and gas.
What You Should Know
The Senate has flagged major discrepancies in NNPC’s financial records, especially concerning unaccounted legal and auditing fees and a disputed N210 trillion in receivables.
The NNPC has one week to respond to 11 formal queries. The move aligns with President Tinubu’s push for transparency under his Renewed Hope agenda.
