The Nigerian Senate has issued a seven-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) to provide a comprehensive account of N201 trillion in missing funds identified in the company's financial statements from 2017 to 2023.
The directive came during a session of the Senate Committee on Public Accounts on Wednesday, where NNPCL's Chief Financial Officer, Dapo Segun, and other executives of the state-owned oil firm appeared before lawmakers.
Financial Discrepancies Raise Alarm
Senator Aliyu Wadada, Chairman of the committee, described the inconsistencies in NNPCL's financial records as "unacceptable" and warned that the Senate would exercise its full oversight powers to resolve the matter.
"We are looking at over N210 trillion in just two categories—accrued expenses and receivables. These are not mere rounding errors; they raise fundamental questions about transparency and financial integrity," Wadada stated during the session.
The committee highlighted accrued expenses of N103 trillion, which included N600 billion in retention fees, unspecified legal fees, and auditor charges—all reportedly without supporting documentation or referenced contracts.
"How do you quote N600 billion in retention fees with no contract to back it up?" Wadada questioned. "There are legal fees with no record of the legal services rendered. It's completely unjustifiable."
Implications for Nigeria's Oil Sector
This development comes at a critical time for Nigeria's oil sector, which remains the country's primary source of foreign exchange and government revenue. The NNPCL, which transitioned from a corporation to a limited company in 2021, has faced ongoing scrutiny regarding its financial management and transparency.
The Senate's investigation into these missing funds represents one of the largest financial probes in the company's history and could have significant implications for Nigeria's economic management and anti-corruption efforts.
Analysts suggest that resolving these financial discrepancies is crucial for restoring investor confidence in Nigeria's oil sector and improving the country's fiscal management.
The NNPCL executives present at the hearing did not provide immediate detailed responses to the allegations but are expected to prepare comprehensive documentation within the seven-day timeframe.
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