The Senate Public Accounts Committee has given the external auditors of the Nigerian National Petroleum Company Limited (NNPC Ltd.) one week to provide detailed explanations and supporting documents for more than N210 trillion recorded as receivables and payables in the company’s audited financial statements.
The committee, chaired by Senator Ibrahim Dankwambo, demanded a full breakdown of the N107 trillion receivables and N103 trillion payables, including schedules, working papers, and documents used by the auditors in certifying the accounts.
The lawmakers said the figures remained unexplained and could not be left unreconciled, stressing that the inquiry was aimed at establishing clarity rather than alleging that funds were missing.
The auditors had told the committee that the requested documents were part of their internal working papers and would require about two weeks to retrieve.
The explanation was rejected by the lawmakers, who insisted that the documents should already be available since the figures had been certified.
Dankwambo questioned why auditors could not immediately present evidence supporting financial statements they approved, saying professional responsibility required them to defend their audit opinions.
The audit representatives argued that NNPC remained their client and should ordinarily provide explanations on the figures.
However, senators maintained that the auditors appeared before the committee in an independent capacity and must account for the work they performed.
Senator Abdul Ningi cited the constitutional powers of the National Assembly to summon persons and demand documents during investigations, insisting that confidentiality agreements could not prevent compliance with parliamentary inquiries.
Senator Adams Oshiomhole also challenged the auditors’ position, saying the controversy arose from figures contained in the accounts they audited and therefore required their direct explanation.
The committee expressed concern that the inability to provide supporting schedules could raise questions about the credibility of the audit process.
Dankwambo said NNPC’s explanation that the figures were largely linked to joint venture cash calls and payments was insufficient because the company had not identified the specific transactions and parties involved.
He stressed that the committee was not accusing anyone of wrongdoing but was concerned that financial entries of such magnitude had remained unreconciled.
The lawmakers also rejected claims that commercial confidentiality could prevent disclosure, arguing that NNPC is owned by the Federal Government and its financial records are subject to public accountability.
Citing past international audit failures, Dankwambo warned auditors of the consequences of failing to properly support financial statements they had certified.
The committee directed the auditors to return within one week with a complete schedule of the receivables and payables, supporting documents, and the basis for certifying the figures.
The Senate panel reiterated that its concern was to establish transparency and accountability in the management of the nation’s petroleum resources.
