Senate gives NNPC auditors one week to explain unreconciled ₦210tn figures

Ultimatum over Unreconciled Financial Statements

The Senate Committee on Public Accounts on Wednesday issued a one-week ultimatum to the external auditors of the Nigerian National Petroleum Company Limited (NNPC Ltd.) to provide a detailed breakdown of more than ₦210 trillion contained in the company's audited financial statements, insisting that the figures remain unexplained and unreconciled.

The committee, chaired by Senator Ibrahim Dankwambo (PDP, Gombe), directed the auditors to produce the schedules and working papers supporting the audited figures, maintaining that having certified the financial statements, they were independently responsible for defending the audit opinions issued on the accounts.

The controversy centres on two major entries in NNPC Ltd.'s audited financial statements: approximately ₦107 trillion recorded as receivables and ₦103 trillion listed as payables. Lawmakers stated that these figures have not been adequately explained despite repeated engagements with the national oil company.

Rejection of Confidentiality and Procedural Delays

The hearing became contentious after representatives of the external audit firm informed the committee that the detailed schedules formed part of their working papers and requested about two weeks to retrieve the documents. This request was immediately rejected by members of the committee, who questioned why auditors who had already signed off on the accounts were unable to produce the supporting documentation.

Senator Dankwambo challenged the auditors' explanation, emphasizing that certified financial statements must be backed by detailed schedules. He noted that if the figures were already in the working papers, there should be no delay in presentation.

When you have figures in the financial statements, there must be supporting schedules showing how those figures were arrived at. If you already have them in your working papers, why do you need to go back before presenting them to this committee?

— Senator Ibrahim Dankwambo, Chairman, Senate Committee on Public Accounts

The auditors argued that under professional practice, NNPC Ltd. remained their principal and that explanations relating to the figures should ordinarily come from the company. They recalled that during an earlier appearance, it had been agreed that NNPC officials would provide explanations on the figures contained in the audited accounts. However, the committee rejected this argument.

Constitutional Powers and Public Oversight

Senator Abdul Ningi (PDP, Bauchi Central), citing Sections 88 and 89 of the 1999 Constitution (as amended), stated that the National Assembly possesses broad investigative powers to summon individuals or organisations and compel the production of documents relevant to its investigations.

The Constitution empowers this committee to invite any person and request any document necessary for our investigation. You are before this committee as independent auditors. Do not tell us you must first seek permission from your client before complying with the lawful request of Parliament.

— Senator Abdul Ningi, Member, Senate Committee on Public Accounts

Senator Adams Oshiomhole (APC, Edo North) also dismissed the auditors' reliance on confidentiality obligations, stressing that NNPC Ltd., as a wholly government-owned company, could not shield financial records from parliamentary scrutiny. He maintained that the auditors are responsible for the audit work they performed and must answer questions arising from it.

NNPC is not a private family business. It belongs to the Nigerian people. We represent those people, and we are entitled to know how every kobo is accounted for. There can be no secrecy between an auditor and a wholly government-owned company when Parliament is carrying out a constitutional investigation.

— Senator Adams Oshiomhole, Member, Senate Committee on Public Accounts

Concerns Over Audit Integrity

Senator Babangida Useni argued that professional ethics and confidentiality agreements could not override the constitutional oversight powers of the National Assembly. He suggested that an inability to produce the detailed schedules raises questions regarding whether the audit work was actually conducted.

If you cannot produce the detailed schedules supporting these figures, then it raises serious questions about whether the audit work was actually done. If it was done, the supporting documentation should already exist. We believe 48 hours should even be sufficient, but certainly not an indefinite period.

— Senator Babangida Useni, Member, Senate Committee on Public Accounts

The committee further criticised the continued inability of both NNPC Ltd. and its auditors to reconcile the receivables and payables. According to Dankwambo, NNPC officials had explained that the figures related to joint venture cash calls and payments but had failed to identify specific transactions or counterparties.

At the end of the session, the committee discharged the auditors and directed them to return within one week with the requested schedules, working papers, and other supporting documentation. Failure to comply, the lawmakers warned, would heighten concerns over the integrity of the audited financial statements and the accountability of those responsible for certifying them.