The Senate Committee on Public Accounts has lashed out at the Nigerian National Petroleum Company Limited (NNPC Ltd.) for failing to appear before it to explain massive discrepancies in its audited financial statements from 2017 to 2023, describing the company’s conduct as a blatant affront to legislative authority.
The lawmakers were visibly angered after discovering that no NNPC official showed up for the hearing — despite the company selecting the date itself.
“May I know if NNPC is here? Any member of the management present?” the Committee Chairman asked. “It is rather unfortunate that none of the officials of NNPC is here — on a date they themselves chose.”
At the heart of the committee’s fury is the oil giant’s claim of ₦210 trillion in combined accrued expenses and receivables within the six-year period — a figure lawmakers branded “fictitious and financially impossible.”
According to NNPC’s filings, ₦103 trillion was allegedly spent on cash call payments to joint venture partners in 2023 alone, while ₦107 trillion was listed as receivables, part of which the company claimed was trapped in defunct banks.
The committee dismissed both figures as indefensible.
“Cash call arrangements were abolished in 2016,” the chairman said. “How can NNPC claim to have paid ₦103 trillion in one year when it only generated ₦24 trillion in revenue over five years? That figure must be returned to the Treasury.”
Lawmakers also flagged what they called illegal subsidy practices by NNPC and its subsidiary, NAPIMS, between 2017 and 2021.
“NAPIMS charged subsidy on crude oil — which is illegal — while NNPC charged subsidy on refined products like kerosene, diesel, and fuel. This is monumental fraud,” the committee stated.
The panel vowed to summon past and present officials if the current management fails to offer satisfactory explanations.
“NNPC must not act as if it is above the law. The Group Chief Executive Officer must appear in person. Being out of the country will no longer be accepted as an excuse,” the chairman warned.
Backing the resolution, Senator Jerry praised the committee’s resolve and condemned NNPC’s disregard for oversight.
“Some people behave as if NNPC is the country itself,” he said. “These are the same funds our president is forced to borrow abroad. We will not tolerate it. The Constitution empowers this committee to act, even to arrest the GCEO if necessary.”
The committee reaffirmed its constitutional mandate to protect public resources and demanded full refunds where illegal expenditures are proven.
“We are not EFCC or ICPC. We act openly and constitutionally. This administration under President Bola Ahmed Tinubu needs transparency, not impunity,” the chairman declared.