The Nigerian Senate has directed the Nigerian National Petroleum Company Limited (NNPCL) to refund ₦210 trillion in funds that could not be accounted for in its financial statements, rejecting the explanations provided by the oil firm’s management.
The decision followed a months-long investigation by the Senate Committee on Public Accounts, chaired by Senator Aliyu Wadada, into the operations of NNPCL between 2017 and 2023.
During a committee session on Tuesday, the Senate reviewed NNPCL’s audited accounts, which showed ₦103 trillion in accrued expenses and ₦107 trillion in receivables, totaling ₦210 trillion. The committee found these figures contradictory and unsatisfactory.
“The NNPCL’s explanation on the ₦107 trillion receivables, equivalent to roughly $117 billion — contradicts available facts and evidence provided by the company itself. This is unacceptable,” Senator Wadada said.
The committee also questioned how the firm claimed to have paid ₦103 trillion in Cash Calls to Joint Venture (JV) partners in 2023 alone, despite generating only ₦24 trillion in crude revenue over the five years between 2017 and 2022. “Cash Call arrangements were abolished in 2016. How did NNPCL make this payment? Where did the money come from?” Wadada asked.
Management Absence Raises Eyebrows
The NNPCL’s Group Chief Executive Officer, Bayo Ojulari, did not appear at the resumed session, which the committee said left them with no choice but to reject the explanations already provided.
“If the current management is finding it difficult to provide acceptable answers, it is better they say so,” Wadada added. “The committee will not hesitate to subpoena former officials of NNPCL and NAPIMS to ensure accountability.”
NNPCL Links Cooking Gas Scarcity, Price Surge To PENGASSAN Strike
The committee emphasized that the ₦103 trillion in accrued expenses must be returned to the Federation Account, adding that failing to do so could have serious consequences for the company’s credibility and Nigeria’s oil sector transparency.
Implications for the Oil Sector
Experts say the Senate’s directive highlights longstanding issues in financial reporting and oversight in Nigeria’s oil industry. “This is not just about numbers; it’s about institutional accountability and restoring public confidence in how Nigeria manages its oil revenues,” said Chukwuma Okeke, a petroleum economist.
The unaccounted funds, if returned, could help bolster the Federation Account and fund critical national projects. However, if NNPCL struggles to recover the funds, the probe could lead to legal action against past and present officials.
The committee stated that it expects NNPCL to comply fully and provide a clear roadmap for refunding the disputed funds. Failure to comply may prompt further investigation, subpoenas, and possible sanctions.
Senator Wadada concluded: “The health of Nigeria’s economy is intertwined with transparency in the management of oil revenues. This committee will continue to ensure that all unaccounted funds are returned and that lessons are learned for future governance.”
Discover more from RainSMediaRadio
Subscribe to get the latest posts sent to your email.
