Table of Contents
Table of Contents
- Senate Demands ₦210 Trillion Refund from NNPCL Over Discrepancies
- Investigation Uncovers Massive Financial Irregularities
- NNPCL’s Leadership Fails to Provide Clarifications
- Contradictions in Financial Claims Raise Serious Questions
- Unrealistic Cash Call Payments Under Scrutiny
- Committee Demands Immediate Refund and Threatens Further Action
- Upholding Transparency in Nigeria’s Oil Revenue Management
Senate Demands ₦210 Trillion Refund from NNPCL Over Discrepancies
Following an extensive inquiry into the financial records of the Nigerian National Petroleum Company Limited (NNPCL), the Senate has mandated the company to reimburse ₦210 trillion to the Federation Account. This directive comes after the Senate dismissed NNPCL’s justifications concerning the substantial missing funds.
Investigation Uncovers Massive Financial Irregularities
The Senate Committee on Public Accounts, led by Senator Aliyu Wadada, conducted a thorough review of NNPCL’s audited financial statements spanning from 2017 through 2023. The probe revealed alarming figures: ₦103 trillion categorized as accrued expenses and ₦107 trillion listed as receivables. Both amounts were flagged as dubious due to insufficient supporting documentation.
NNPCL’s Leadership Fails to Provide Clarifications
During the resumed session at the National Assembly, the committee expressed frustration over the absence of NNPCL’s Group Chief Executive Officer, Bayo Ojulari, who did not appear to address the lawmakers’ concerns. Senator Wadada emphasized that the responses to the 19 detailed queries previously submitted to NNPCL were inconsistent and unsatisfactory.
Contradictions in Financial Claims Raise Serious Questions
Specifically, the committee highlighted contradictions in NNPCL’s explanation of the ₦107 trillion receivables, which equate to approximately $117 billion. Senator Wadada stated, “The evidence provided by NNPCL itself contradicts their claims, compelling the committee to reject these figures outright.”
Unrealistic Cash Call Payments Under Scrutiny
Further skepticism was directed at NNPCL’s assertion of disbursing ₦103 trillion as Cash Calls to Joint Venture partners in 2023. This claim is particularly questionable given that the company’s total crude oil revenue from 2017 to 2022 was only ₦24 trillion. The committee noted that Cash Call arrangements were officially discontinued in 2016 during President Muhammadu Buhari’s administration, making such payments implausible.
Senator Wadada questioned, “How can NNPCL justify paying ₦103 trillion in a single year when it generated just ₦24 trillion over five years? The source of these funds remains unclear.”
Committee Demands Immediate Refund and Threatens Further Action
Due to the unsatisfactory explanations, the Senate Committee has ordered the immediate return of the ₦210 trillion to the Federation Account. Additionally, the panel warned that continued non-compliance by NNPCL’s current management would lead to summons for former executives of both NNPCL and the National Petroleum Investment Management Services (NAPIMS).
Senator Wadada added, “If the current leadership cannot provide credible answers, they should acknowledge this. The committee is prepared to subpoena previous officials to ensure accountability.”
Upholding Transparency in Nigeria’s Oil Revenue Management
The Senate reaffirmed its commitment to enforcing transparency and accountability in the stewardship of Nigeria’s oil wealth. This move aligns with broader efforts to combat corruption and safeguard national resources for the benefit of all Nigerians.
Recent data from the Nigerian Extractive Industries Transparency Initiative (NEITI) underscores the critical need for stringent oversight, as discrepancies in oil revenue reporting have cost the country billions of naira annually.
