The Senate Committee on Public Accounts on Thursday insisted that the Nigerian National Petroleum Company Limited (NNPCL) must account for ₦210 trillion, which had not been “netted off” in its audited financial statement.
There has been a back-and-forth between the committee and the management of the oil company over the figure, resulting in the panel giving the Group Chief Executive Officer (GCEO), Mr Bayo Ojulari, until July 10 to appear before it to address the 11 pending questions the committee asked about the funds.
The committee has been reviewing the audited books of the NNPCL for the period 2017–2023 and uncovered what it described as “vague financial information” about the ₦210 trillion it insists the company must clarify for public understanding.
“We never said NNPCL stole ₦210 trillion, but we insist you must account for ₦210 trillion.
“You have an account that is not netted off, so it can’t be acceptable to us,” the Chairman of the committee, Senator Aliyu Wadada, said at the reconvened sitting of the committee on Thursday, where Ojulari was expected to lead the oil firm’s team.
However, the GCEO was absent but sent the Chief Financial Officer, Mr Dapo Segun, to represent him.
Segun, while responding to inquiries on why Ojulari was absent, explained that the GCEO was leading a delegation to represent Nigeria at an Organisation of the Petroleum Exporting Countries (OPEC) session outside the country and would not be available before the weekend.
His response infuriated some committee members, who reminded Ojulari that he could afford to fly to attend OPEC meetings because Nigerians gave him the opportunity to do so through his appointment by President Bola Tinubu.
“Today, the same Nigerians, through the Senate, are asking you to come and explain your financial statement, and you are not available,” Senator Abdul Ningi said.
Also speaking, Senator Adams Oshiomhole described the NNPCL as “dirty” and “having a track record of corruption”, adding that it must constantly update Nigerians on how their oil resources were being managed.
“Anybody who is too big to obey the Constitution of Nigeria should relocate. We are empowered by our constituents to do what we are doing,” he added.
Wadada also referenced comments made in public suggesting that the NNPCL’s records were correct while the senators did not understand the financial statement submitted to them.
Naming some members of the committee, Wadada said there were about four ex-governors, chartered accountants and one Senior Advocate of Nigeria (SAN) on the panel.
He said, “It is insulting if you say Senator Ibrahim Dankwambo, a former Accountant-General of the Federation and governor; Senator Ede Dafinone, whose family is all about accounting practice; of course there is our SAN here; or is it Senator Abdul Ningi, who has spent many years in the National Assembly looking at budgets after budgets — that all these people do not understand the financial statement of the NNPCL?”
Segun, who led the NNPCL’s team, did not make further comments on Thursday beyond explaining that Ojulari was unavailable.
The session later adjourned until Tuesday next week, while a new date would be communicated to Ojulari for his appearance.
On June 18, Wadada had given an elaborate explanation on what led to the current face-off.
He narrated, “The explanation of what led to the NNPC’s audited financial statement from 2017 to 2023, which, of course, having looked at that document, we came up with questions.
“But the specific ones today, the most important, were the ones I asked before we eventually decided to give them all the 11 questions and then the ultimatum of one week for them to respond to.
“In the audited financial statement, they said accrued expenses were — and still are, since that is what is contained in the statement — ₦103 trillion.
And what makes up accrued expenses are, one: retention fees, legal fees, and auditors’ fees. Retention is known, of course, to be 5% of the total contract sum. And no reference, no mention, was made to the contracts that led to this retention.
“And the retention figure is ₦600-and-something billion. And then the accrued legal fees — no details of legal engagements that led to the fee were attached to the legal fees.”
Speaking further, Wadada said:
“And the auditors’ fees — we have all seen what you’ve seen, you’ve heard and listened to the audited financial statement that was produced by the auditors of NNPC. The next thing of concern is the receivables. The receivables are ₦103 trillion.
“Ironically, completely independent of what is contained in the audited financial statement relating to these receivables, just this afternoon, before the commencement of the exercise, NNPC brought a new document — a document to the committee that is completely independent of what is contained in the audited financial statement and with items that contradict the items contained in the audited financial statement.
“This we found very ridiculous, very unacceptable by the committee.
You have listened to all that transpired, and the questions are now handed over to them. It is important for the public to know each of these questions emanated as a result of what we discovered from the audited financial statement of NNPC from 2017 to 2023.
“Now, on these just two items — accrued expenses and receivables — we are talking over ₦210 trillion.
He added, “And in this day and age — I mean, permit me to say, in Nigeria of today — that President Bola Tinubu, as headmaster of the project called Nigeria, is committed to changing the narratives in the system. Changing these narratives, which are enveloped by the Renewed Hope Agenda, cannot be achieved without the needed and required funding.
“So, it is a government that needs all the support for funds to be made available to it.
And under such a quest, these figures are mind-boggling, they are scary, they are, of course, worrisome.
“For us, as representatives of the people, we will do the best we can. I know for a fact that this will not just go down the drain.
“Well, how can it be erroneous? It all emanated — the figures emanated — from the audited financial statement of NNPC. And you’ve heard the contradictions. They said reconciliation had not been done.
So if reconciliation was not done, why did they sign off on the audited financial statement? And this audited financial statement is already in the public domain. And NNPC is planning to go to the market for an Initial Public Offering (IPO).”
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