Nigeria’s Senate Public Accounts Committee has issued a definitive ultimatum to the Nigerian National Petroleum Company Limited (NNPCL): explain within three weeks why its audited financial statements from 2017 to 2023 contain a staggering ₦210 trillion in unexplained liabilities and assets. The directive came during a tense session on July 29, 2025, in Abuja, where the newly appointed NNPCL CEO, Bayo Ojulari, finally appeared before the committee after several prior absences. The amount in question comprises ₦103 trillion in accrued expenses—including retention, legal, and audit fees—and an additional ₦107 trillion in receivables, both flagged as highly irregular due to missing documentation.
Ojulari, who has spent just over 100 days in office, acknowledged the magnitude of the issues and requested four weeks to prepare proper documentation. Recognizing the urgency but declining the extension, the committee granted him three weeks to submit written responses to 19 targeted audit queries. Following that, a physical appearance from Ojulari and other top management will be mandatory. Committee Chair Senator Ahmed Wadada stressed that these discrepancies were extracted directly from NNPCL’s audited report by the Auditor-General and are yet to be reconciled—not presumed stolen or missing—but must be fully accounted for.
This latest imbroglio follows a sequence of events beginning in June 2025, when the committee initially confronted NNPCL over similarly alarming figures. NNPCL had failed to appear before lawmakers, prompting a 10-day ultimatum. Subsequently, the company submitted a letter requesting a two-month delay, citing internal retreats—a plea the committee rejected outright. Senators warned of using constitutional powers, including sanctions or arrest warrants, should the company continue to ignore summonses.
The implications of this probe are profound. The fiscal oversight committee highlighted discrepancies such as over ₦600 billion in retention fees without contract references, and substantial receivables divergences between the initial audit and a revised document submitted moments before hearings began. Analysts say that releasing financial statements before internal reconciliations were complete undermines investor confidence—especially given NNPCL’s plan for a potential Initial Public Offering (IPO).
Moving forward, the Senate demands full cooperation and transparency. As Ojulari committed to assembling a team with the company’s external auditors, lawmakers insist any failure to comply or evasive behavior will provoke constitutional consequences. Senator Victor Umeh characterized the company as holding “Nigeria’s economic prosperity” and reiterated that public trust hinges on clarity and accountability.
The coming weeks will reveal whether NNPCL can deliver substantive answers and restore credibility—or if this audit becomes a landmark test of Nigeria’s commitment to fiscal transparency in the oil sector.
Credit: Punch news
