The Senate Public Accounts Committee has given the external auditors of the Nigerian National Petroleum Company (NNPC) Limited one week to provide a detailed breakdown of more than N210 trillion recorded as receivables and payables in the company’s audited financial statements, intensifying legislative scrutiny of the state-owned energy firm’s finances.
The directive followed lawmakers’ concerns over approximately N107 trillion classified as receivables and another N103 trillion listed as payables in NNPC Ltd.’s audited accounts covering the 2017 to 2023 financial years. Members of the committee said repeated engagements with company officials had failed to adequately explain the composition of the figures or identify the underlying transactions.
Chairman of the committee, Senator Ibrahim Dankwambo, said the external auditors could not distance themselves from the financial statements after issuing unqualified audit opinions. He directed them to submit the schedules, working papers and other supporting documents used in arriving at the reported balances within one week.
The hearing became contentious after representatives of the audit firm requested two weeks to retrieve the relevant documentation, arguing that the schedules formed part of their audit working papers. Lawmakers rejected the request, insisting that documentation supporting figures certified in audited accounts should be readily available.
According to Dankwambo, financial statement balances of such magnitude must be backed by detailed schedules identifying the transactions and counterparties involved. He stressed that the committee was seeking clarity rather than alleging that public funds had been misappropriated.
Committee member Senator Abdul Ningi cited Sections 88 and 89 of the 1999 Constitution, as amended, arguing that the National Assembly has the constitutional authority to summon individuals and compel the production of documents necessary for investigations. He maintained that the auditors were appearing before the committee in their professional capacity and could not rely on client confidentiality to withhold information requested during parliamentary oversight.
Senator Adams Oshiomhole also challenged the auditors’ position, noting that the questions before the committee stemmed directly from audit reports they had signed. He argued that NNPC Ltd., as a government-owned company, remains accountable to the Nigerian public through the National Assembly and cannot invoke commercial confidentiality to frustrate constitutional oversight.
Lawmakers noted that NNPC had previously indicated the balances largely related to joint venture cash calls and associated obligations but had yet to provide a transaction-by-transaction reconciliation. The committee said identifying the specific debtors, creditors and underlying agreements was essential to verifying the accuracy of the reported figures.
The outcome of the investigation could have broader implications for corporate governance and financial transparency within Nigeria’s oil and gas sector. It may also shape public confidence in the quality of external audits for state-owned enterprises, particularly as regulators continue to push for stronger accountability following the commercialisation of NNPC Ltd. under the Petroleum Industry Act.
