Lawmakers fault oil firm’s claims of ₦103trn JV expenses, ₦107trn receivables; summon GCEO after no-show at hearing…
The Senate has dismissed explanations provided by the Nigerian National Petroleum Company Limited (NNPCL) over the alleged ₦210 trillion unaccounted funds discovered in its audited financial statements. Lawmakers have ordered that the amount be refunded to the Federation Account, insisting the company’s responses were inconsistent and lacked credibility.
The Senate Committee on Public Accounts, chaired by Senator Aliyu Wadada, reached the decision on Tuesday after the NNPCL’s Group Chief Executive Officer, Bayo Ojulari, failed to appear before the committee for a scheduled session at the National Assembly in Abuja.
The meeting had been convened to allow the oil company clarify issues raised in 19 audit questions linked to the ₦210 trillion in transactions between 2017 and 2023. Despite several exchanges over the past few weeks, senators said the firm’s written responses only deepened concerns over the accuracy of its financial reporting.
According to the committee, a review of NNPCL’s operations revealed questionable figures amounting to ₦103 trillion in accrued expenses and ₦107 trillion in receivables, prompting the inquiry. Senator Wadada, expressing disappointment over the company’s failure to attend the hearing, said the explanations submitted were “contradictory and unsatisfactory.”
“NNPCL claimed ₦103 trillion as accrued expenses and ₦107 trillion as receivables — totaling ₦210 trillion. On question eight, the explanation provided on the ₦107 trillion receivables, which is equivalent to about $117 billion, contradicts NNPCL’s own documents. The committee has no choice but to reject it,” Wadada stated.
He further queried how the company could have paid ₦103 trillion in Joint Venture (JV) Cash Calls in 2023 alone, despite generating only ₦24 trillion in crude oil revenue between 2017 and 2022.
“Cash Call arrangements were scrapped in 2016 under the Buhari administration. How can NNPCL claim to have paid ₦103 trillion in one year when it only made ₦24 trillion over five years? Where did that money come from?” he asked.
“As far as this committee is concerned, that figure is unjustifiable and unacceptable. The ₦103 trillion must be returned to the Treasury.”
Wadada added that the committee would prefer an honest admission of challenges from NNPCL’s current management rather than conflicting justifications.
“If the present management is finding it difficult to provide credible answers, it is better they say so. The committee will not hesitate to summon former NNPCL and NAPIMS officials,” he warned.
The lawmakers are expected to reconvene once NNPCL’s leadership appears before the committee to address the unresolved issues.
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