NNPCL under fire for N210tn discrepancy in audit reports

• The Senate has intensified its probe into NNPCL's fiscal records, demanding answers wrong 10 moving days implicit an alleged N210 trillion discrepancy betwixt receivables and accrued expenses
• The Committee connected Public Accounts, chaired by Senator Aliyu Wadada, flagged inconsistencies betwixt NNPCL’s audited statements and recently submitted documents, informing of law enforcement if justifications aren't provided
• Senator Wadada besides criticised NNPCL’s petition for a two-month extension, stressing the implications for capitalist assurance and nationalist fiscal credibility

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market

The Senate's probe into the fiscal operations of the Nigerian National Petroleum Company Limited (NNPCL) has intensified aft the lipid elephantine was issued a caller 10 moving days' ultimatum by the Committee connected Public Accounts, chaired by Senator Aliyu Wadada.

The Senate has intensified its probe into NNPCL's fiscal records. Photo Credit: NNPCL
Source: Getty Images

This improvement follows concerns astir an alleged N210 trillion discrepancy successful NNPCL’s audited fiscal statements.

The committee uncovered N107 trillion successful receivables and N103 trillion successful accrued expenses during its reappraisal of the company’s records from 2017 to 2023.

It has present demanded elaborate justifications for these figures, informing that nonaccomplishment to supply capable explanations would punctual the Senate to afloat enforce the Constitution.

The contiguous root of the committee’s interest stems from NNPCL’s publically disposable audited fiscal results.

According to Senator Wadada, these records rise superior questions astir the company’s fiscal transparency and stewardship.

The study cites N103 trillion successful accrued expenses for audit costs, legal services, and retention fees—none of which were linked to circumstantial contracts oregon engagements. In particular, N600 cardinal successful retention fees were listed without immoderate supporting documentation.

More troubling is simply a recently submitted papers from NNPCL, handed implicit conscionable earlier past Thursday’s meeting, which presents conflicting figures for the N107 trillion successful receivables.

“Ironically, the papers NNPCL brought this day is wholly inconsistent with the audited fiscal statement. It’s not conscionable confusing; it’s insulting to the quality of the committee,” Wadada stated.

One of the astir glaring inconsistencies involves the nett and nonaccomplishment reports from NNPCL and 1 of its subsidiaries. Between 2017 and 2021, NNPCL reported a nonaccomplishment of N16 billion, portion the National Petroleum Investment Management Services (NAPIMS) allegedly made a N9 trillion nett during the aforesaid period.

According to a BusinessDay report, down the scenes lies a important contention against clip that could find the outcome—or adjacent the continuation—of the probe.

At the bosom of the quality is NNPCL’s petition for a two-month deadline hold to reply the Senate’s 11-point query.

Photo Credit: NNPCL
Source: Getty Images

In a letter, the institution attributed the hold to the lack of cardinal executives, reportedly overseas. However, the committee rejected this explanation.

“This committee is not expecting immoderate documents from the NNPCL. We were expecting answers to the 11 questions we asked them,” Senator Wadada said during Thursday’s session.“Why should a firm assemblage similar the NNPCL petition 2 months to respond to queries that originated from their ain interior audit?” helium asked, describing the petition arsenic “nonsense” and mounting a deadline of July 10.

EFCC arrests apical erstwhile NNPC fiscal brag

Legit.ng reported that the Economic and Financial Crime Commission (EFCC) has said it has arrested Umar Isa, the erstwhile main fiscal serviceman (CFO) of the Nigerian National Petroleum Commission (NNPC) Limited.

Isa was reportedly arrested implicit the allegation of $7.2 cardinal fraud, which was linked to the realisation of Nigeria's refineries.

These included those successful Warri, Kaduna and Port Harcourt refineries. The committee besides disclosed detaining the erstwhile managing manager of Warri Refinery, Jimoh Olasunkanmi.

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Source: Legit.ng