The Senate has ordered the Nigerian National Petroleum Company Limited (NNPCL) to refund ₦210 trillion to the Federation Account after rejecting the company’s explanations regarding alleged discrepancies in its financial records.
The directive followed an extensive investigation by the Senate Committee on Public Accounts, chaired by Senator Aliyu Wadada, which has been examining NNPCL’s financial statements from 2017 to 2023.
The decision came after the Group Chief Executive Officer of NNPCL, Mr. Bayo Ojulari, failed to appear before the committee during its resumed session at the National Assembly on Tuesday.
According to findings presented by the committee, the disputed amount comprises ₦103 trillion recorded as accrued expenses and ₦107 trillion listed as receivables in NNPCL’s audited accounts. Lawmakers noted that both figures lacked sufficient documentary evidence and raised serious questions about the company’s financial practices.
Senator Wadada explained that the committee had reviewed all 19 queries sent to the NNPCL but found the company’s responses “contradictory and unsatisfactory.”
“NNPC claimed ₦103 trillion as accrued expenses and ₦107 trillion as receivables – amounting to ₦210 trillion. On question eight, the explanation regarding the ₦107 trillion receivables, equivalent to about $117 billion, contradicts the evidence NNPC itself provided. The committee is duty-bound to reject this,” he stated.
He also questioned NNPCL’s claim of paying ₦103 trillion in cash calls to Joint Venture (JV) partners in 2023, noting that the company’s total crude oil revenue from 2017 to 2022 was only ₦24 trillion.
“Cash Call arrangements were abolished in 2016 under the Buhari administration. How then can NNPC claim to have paid ₦103 trillion in one year when it generated only ₦24 trillion over five years? Where did NNPC get that money?” Wadada queried.
The committee ruled that the explanation was unacceptable and directed NNPCL to refund the ₦210 trillion to the national treasury.
It also warned that if the current management continued to ignore its summons, the Senate would compel the appearance of former top officials of NNPCL and the National Petroleum Investment Management Services (NAPIMS).
“If the present management of NNPCL finds it difficult to provide satisfactory answers, they should admit it. The committee will not hesitate to subpoena former officials of NNPCL and NAPIMS,” Wadada said.
The Senate reaffirmed its commitment to ensuring transparency and accountability in the management of Nigeria’s oil revenues, emphasizing that public funds must be fully accounted for.
