The Nigerian Senate has launched an investigation into the Nigerian National Petroleum Company Limited's (NNPCL) financial records, specifically a discrepancy of N211 trillion. This probe was triggered by the company's audited financial statements for 2023, which revealed N107 trillion in receivables and N103 trillion in payables or accrued expenses. The Socio-Economic Rights and Accountability Project (SERAP) has also filed a lawsuit against NNPC Ltd., seeking detailed explanations and supporting documents for these figures.
The Senate Public Accounts Committee has demanded that NNPC provide detailed schedules showing how the large balances were generated, who the counterparties were, and how the balances were reconciled. The committee's chairman, Senator Ibrahim Dankwambo, emphasized that NNPC officials had attributed the balances to joint-venture cash calls and payments but had not identified individual transactions or counterparties. The committee wants to know whose receivables are being reported, whom NNPC owes, what transactions produced the balances, and whether the two sides can be reconciled.
Industry experts have noted that the disputed figures are not isolated accounting entries but part of a larger expansion in NNPC's reported receivables and liabilities during 2023. NNPC's total assets stood at N246.82 trillion in 2023, up from N58.49 trillion in 2022, representing a 322 percent increase. Trade and other receivables surged from N19.08 trillion in 2022 to N164.45 trillion in 2023, an increase of over N145 trillion. The increase in receivables was driven largely by "other receivables," which stood at N108.44 trillion in 2023, compared to N740.8 billion in 2022.
NNPC's 2023 accounts also showed a profit after tax of N3.297 trillion, up from N2.548 trillion in 2022. The company released the accounts in August 2024, stating that they demonstrated its commitment to transparency and accountability following its transition into a commercially oriented entity under the Petroleum Industry Act (PIA). However, questions about the quality of the disclosures persist. In 2025, the Senate Public Accounts Committee began pressing NNPC for explanations of the large balances.
The Senate committee summoned NNPC's external auditors and demanded detailed schedules and working papers supporting the over N210 trillion entries. The auditors requested about two weeks to retrieve the documents but were given one week by the committee. Former Group General Manager of the National Petroleum Investment Management Services, Bala Wunti, told the committee that there was no evidence in the 2023 audited accounts that N210 trillion was missing. Wunti explained that the N107 trillion represented money owed to NNPC, while the approximately N103 trillion in accrued expenses represented liabilities owed by NNPC.
An oil and gas expert noted that the accounts themselves show why the issue requires more than a simple comparison of receivables and payables. NNPC's 2023 cash-flow statement recorded a N144.85 trillion increase in trade and other receivables as a working-capital adjustment. At the same time, trade and other payables increased by N138.70 trillion. Despite these large movements, the group reported cash generated from operations of N11.62 trillion for the year. These figures demonstrate the scale of the non-cash or working-capital movements running through NNPC's accounts.
The investigation into NNPC's financial records highlights the need for greater transparency and accountability in Nigeria's oil economy. The Senate's examination of the company's accounts aims to verify and justify certain significant financial statement components. The outcome of the investigation will be crucial in determining the accuracy of NNPC's financial records and ensuring public confidence in the management of the country's oil resources.
Key points
- The Nigerian Senate is investigating a discrepancy of N211 trillion in NNPC's financial records.
- The discrepancy relates to N107 trillion in receivables and N103 trillion in payables or accrued expenses.
- The investigation aims to ensure transparency and accountability in NNPC's financial management.
