Massive ₦210 Trillion Row: Senate Rebukes NNPCL Over Accounting Controversy

The Chairman of the Senate Committee on Public Accounts, Aliyu Wadada, has said the committee is dissatisfied with the explanations provided by the Nigerian National Petroleum Company Limited (NNPCL) over an alleged ₦210 trillion discrepancy in its financial records.

Wadada made the remarks during an appearance on the television programme Sunday Politics on Channels Television.

The senator, who represents Nasarawa West in the 10th National Assembly, stated that the responses offered by the current management of the national oil company, led by Group Chief Executive Officer Bayo Ojulari, failed to adequately clarify the financial concerns raised by lawmakers.

According to him, the committee expected detailed explanations since the company’s audited financial statements are the primary documents that outline its financial position, including both assets and liabilities.

Wadada explained that the NNPCL listed ₦103 trillion under liabilities as accrued expenses but did not provide sufficient breakdowns or supporting figures for the amount.

He said the absence of detailed entries to justify the figure raised serious concerns for the committee, adding that liabilities recorded in financial statements must be properly substantiated.

The senator also noted that the former Group Chief Executive Officer of the company, Mele Kyari, did not address or defend the ₦210 trillion entries while he was in office.

The controversy emerged during the Senate committee’s review of NNPCL’s audited financial statements covering the period from 2017 to 2023.

During the examination, lawmakers identified financial entries amounting to ₦210 trillion which, according to them, have not been satisfactorily explained by the oil company.

Wadada described the figure under scrutiny as extremely large and difficult to comprehend.

He remarked that it would be unreasonable to simply describe the amount as “missing,” noting that the scale of the figure makes such a conclusion implausible without proper investigation.

The committee has therefore summoned former senior officials of the company, including Kyari, to appear before the Senate and provide clarification regarding the discrepancies.

Wadada further explained that under standard accounting procedures, figures classified as assets or liabilities must pass through the profit and loss account before they can be formally reflected in financial statements.

He added that the committee intends to hold a public hearing where former management officials of the national oil company will be required to address the issues raised.

According to him, the invitations will be issued to the former leadership of the company through the current management shortly after the Eid celebrations in order to allow them explain the circumstances surrounding the disputed figures.