The Senate on Wednesday gave the Nigerian National Petroleum Company Limited (NNPCL) a one-week ultimatum to explain discrepancies amounting to over N210 trillion in its audited financial statements from 2017 to 2023.

The Senate Committee on Public Accounts, gave the directive after grilling representatives of the NNPLC that appeared before it over following a summon.

The committee had assessed the company’s records and raised questions over unexplained figures under “accrued expenses” and “receivables” in the reports.

During the session on Wednesday, where the Chief Financial Officer of NNPCL, Dapo Segun, alongside some other top officials of the oil giant.

The discrepancies were contained in the external auditors’ report on the NNPCL.

The Chairman of the committee, Senator Aliyu Wadada (Nasarawa West), described the inconsistencies as “mind-boggling” and “unacceptable,” emphasizing the urgency for transparency given the government’s ongoing revenue drive.

According to him, the audited statement listed accrued expenses of N103trillion, including retention fees, legal fees, and auditor fees, without providing supporting documents.

Wadada said, “Retention fees alone are quoted at over N600 billion, yet no contracts were referenced to justify these amounts,” he said. “There are also legal fees with no attached details of the legal engagements that led to those costs.”

“Now, on these just two items, accrued expenses and then receivables, we are talking about over N210trillion.”

He said the receivables section, which amounted to N103 trillion was equally worrisome.

The committee said it received a new document from NNPCL shortly before the hearing began which contradicted details in the official audited reports.

“The receivables figure presented in the new document was entirely inconsistent with the audited financial statement,” Wadada said.

“We found this not only ridiculous but also deeply troubling.”

Senator Wadada stressed that the concerns raised by the Senate stemmed directly from the contents of the audited reports, which are already in the public domain.

“In a country led by President Bola Tinubu, who has committed to changing the national narrative through the Renewed Hope Agenda, access to accurate financial information is crucial.

“We need all available resources to fund development, and figures like these demand answers, not silence,” he said.

The senator further queried the NNPCL for signing off on the reports despite ongoing internal reconciliation, noting that the company is also planning to go public through an Initial Public Offering (IPO).

“How can reconciliation still be pending, yet you release and signed off on the audited financials? These are not minor oversights. These figures are already out there in the public space and can impact investor’s confidence,” he said.

He concluded by stating that the committee has handed over 11 specific questions to the NNPCL and expects a full response within one week.

In a related observation, the committee also noted contradictions between profit and loss declarations by the company and one of its subsidiaries.

Senator Wadada disclosed that while the National Petroleum Investment Management Services (NAPIMS) declared a profit of N9 trillion between 2017 and 2021, NNPCL recorded a loss of N16 billion during the same period.

The Committee vowed not to let the matter be swept under the carpet even as it promised to take all necessary steps to ensure that the company accounts for the money. (The Nation)