N210trn Probe: Senate Gives NNPC One Week to Explain Financial Records

The Senate Committee on Public Accounts has given the external auditors of the Nigerian National Petroleum Company Limited (NNPC) one week to submit a full breakdown of more than ₦210 trillion contained in the company’s audited financial statements as lawmakers continue their investigation into the oil firm’s accounts.

The directive was issued on Wednesday during the committee’s resumed hearing in Abuja, where members continued their review of NNPC’s audited financial statements covering the 2017 to 2023 financial years.

The investigation is centred on two major entries in the financial statements. These include ₦107 trillion recorded as receivables and another ₦103 trillion listed as payables.

During the hearing, committee members requested the detailed schedules and documents supporting the figures contained in the audited accounts.

Instead of providing the documents immediately, representatives of the external audit firm requested two weeks to prepare and submit the information.

The request was rejected by members of the committee, who insisted that the auditors should provide the required records without unnecessary delay to assist the ongoing investigation.

Committee Chairman Senator Ibrahim Dankwambo said auditors are expected to have supporting schedules for every figure contained in audited financial statements and questioned why additional time was needed if such records already formed part of their audit working papers.

The auditors, however, maintained that under normal professional practice, the detailed records being requested should come from the NNPC, which is their client.

Lawmakers disagreed with that position, insisting that independent auditors are accountable for the figures contained in the reports they certify.

Senator Abdul Ningi supported the committee’s position by referring to Sections 88 and 89 of the 1999 Constitution, as amended, which empower the National Assembly to invite any individual and request documents needed for legislative investigations.

He maintained that the auditors could not rely on their client as a reason for refusing or delaying the release of documents required by the committee.

Senator Adams Oshiomhole also backed the committee, stating that the questions being raised were based on figures contained in the audit report prepared by the auditors.

He said the auditors were responsible for the work they carried out and should be able to explain the figures without first seeking approval from the NNPC.

The committee also expressed concern over the continued inability of both the NNPC and its auditors to reconcile the receivables and payables listed in the audited accounts.

Dankwambo noted that officials of the oil company had repeatedly explained that the figures mainly related to joint venture cash calls and payments, yet they had failed to identify the specific transactions or organisations connected to the amounts.

The committee chairman, who previously served as Accountant-General of the Federation, said the inability to identify the individual components of the receivables and payables was the reason lawmakers still regarded the combined amount of more than ₦210 trillion as unexplained.

He clarified that the committee was not alleging that the funds were missing but was concerned that such huge figures remained unreconciled in audited financial statements without proper supporting details.

At the end of the session, the committee directed the auditors to submit the requested information within one week and excused them from the hearing.