Coalition disputes Senate panel's ₦210tr NNPCL allegation, calls for expert examination

The Northern Youth Progressive Forum, NYPF, has disputed the Senate Public Accounts Committee's assertion that approximately ₦210 trillion in the accounts of the Nigerian National Petroleum Company Limited, NNPCL, is unaccounted for, and is instead advocating for a thorough examination of the figures.

Senator Ahmed Wadada, Chairman of the Senate Public Accounts Committee, had previously expressed concerns over an alleged ₦210 trillion discrepancy in NNPCL's financial records during the committee's ongoing oversight, warning that former officials of the company could face arrest if they failed to appear before the panel.

The NYPF, in a statement signed by its representative, Aliyu Usman, suggested that the figure being discussed appears to stem from a misinterpretation of the national oil company's financial statements, and as such, the forum is urging caution.

The forum acknowledged the Senate's constitutional oversight responsibility, but emphasized that the figures cited require careful technical examination to avoid misleading conclusions, and expressed concerns about the implications of the figures being presented.

According to the group, the amount being mentioned is inconsistent with the country's fiscal realities, as Nigeria's entire 2024 national budget stands at approximately ₦28.7 trillion, and suggesting that a single entity lost ₦210 trillion raises serious questions that require careful financial clarification.

The forum pointed out that crude oil revenues generated by the federation between 2017 and 2023 did not cumulatively reach the ₦210 trillion figure cited, highlighting a significant discrepancy in the figures.

The NYPF argued that two financial items in NNPCL's balance sheet may have been incorrectly interpreted by the committee, including approximately ₦103 trillion listed as accrued expenses, which represented cumulative multi-year obligations.

These accrued expenses, the forum explained, include joint venture cash calls, production costs, royalties, and technical service fees shared with international oil partners, and are not cash outflows that have disappeared, but rather accounting entries reflecting obligations tied to production activities and partnerships.

Similarly, the forum stated that the ₦107 trillion recorded as sundry receivables refers to funds owed to the national oil company, including outstanding subsidy claims and other obligations due to the NNPCL, and describing such entries as missing funds creates an inaccurate picture of the company's financial position.

The forum referenced the tenure of the immediate past Chief Financial Officer of NNPCL, Mr. Umar Ajiya, noting that the company made significant strides in financial transparency during that period, including the publication of audited financial statements by the NNPCL after several decades.

This development, the forum said, marked an important step toward greater transparency in the management of the nation's oil resources, and demonstrated the company's commitment to accountability.

The transition of the former Nigerian National Petroleum Corporation to a limited liability company under the Petroleum Industry Act required extensive legal and corporate restructuring, the forum noted, and as such, a thorough understanding of these changes is necessary for accurate financial analysis.

The NYPF called on the Senate Public Accounts Committee to adopt a more technical approach in its review of the oil company's financial records, and to engage in a sober and technical reconciliation of accounts rather than relying on figures that may not accurately reflect the underlying accounting classifications.

The forum urged continued engagement between the committee and officials of the oil company to clarify the issues raised, and emphasized that constructive dialogue and professional review of financial records will better serve the goal of transparency.

Ultimately, the forum believes that this approach will preserve confidence in Nigeria's public institutions and the oil and gas sector, and ensure that the country's natural resources are managed in a transparent and accountable manner.