The Senate Committee on Public Accounts has directed the external auditors of the Nigerian National Petroleum Company Limited (NNPC Ltd.) to return within one week with detailed documentation explaining more than ₦210 trillion recorded in the company’s audited financial statements.
The committee insisted that the auditors, having endorsed the financial statements, must provide the schedules and supporting documents used in arriving at the figures rather than referring lawmakers back to NNPC Ltd.
The directive was issued during a committee session chaired by Senator Ibrahim Dankwambo.
At the centre of the inquiry are two major items in the company’s audited accounts: about ₦107 trillion listed as receivables and another ₦103 trillion recorded as payables. Senators said repeated engagements with NNPC Ltd. had failed to provide sufficient explanations for the figures.
During the hearing, representatives of the external audit firm informed lawmakers that the detailed schedules formed part of their audit working papers and requested additional time to retrieve the documents, indicating they might need up to two weeks.
Committee members rejected the request.
Dankwambo questioned why the auditors were unable to immediately produce records supporting figures they had already certified.
He said audited financial statements should be backed by schedules showing how every amount was derived, arguing that such documents should already be available if the audit had been properly completed.
The auditors responded that, under professional standards, NNPC Ltd. remained their client and that detailed explanations of the figures ordinarily rested with the company. They also noted that previous discussions before the committee envisaged NNPC officials providing further clarification on the accounts.
Several lawmakers disagreed with that position.
Senator Abdul Ningi cited the constitutional powers of the National Assembly to summon individuals and request documents relevant to legislative investigations, arguing that the auditors had an obligation to comply with the committee’s request without seeking further approval from their client.
Senator Adams Oshiomhole also maintained that the audit firm was responsible for defending the opinions it issued on the financial statements, stressing that NNPC Ltd., as a government-owned company, remained accountable to Nigerians through Parliament.
According to him, the figures under scrutiny originated from the auditors’ work, making it their responsibility to explain the basis of the entries.
Senator Babangida Useni similarly argued that professional confidentiality could not override the National Assembly’s constitutional oversight powers. He added that if the audit had been properly conducted, the supporting schedules should already exist and be readily available.
The committee also expressed concern over the continued inability of both NNPC Ltd. and its auditors to reconcile the receivables and payables.
Dankwambo noted that company officials had repeatedly stated that the amounts were largely linked to joint venture cash calls and related payments, but had yet to identify the specific transactions or counterparties involved.
He said that if both figures related to the same transactions, they should be capable of reconciliation.
According to the committee, the issue is not that the funds are presumed missing, but that the figures remain insufficiently explained despite appearing in audited financial statements.
Following the deliberations, the committee directed the external auditors to reappear before lawmakers within one week with all supporting schedules, working papers and other documentation relating to the disputed entries.
