The Senate’s probe into the Nigerian National Petroleum Company Limited’s (NNPCL) audited financial statements from 2017 to 2023 hit a temporary pause on Tuesday, after the company’s Group Chief Executive Officer (GCEO), Mr Bayo Ojulari, requested more time to provide detailed responses to the lawmakers’ inquiries.
Ojulari appeared before the Senate Committee on Public Accounts (PAC), led by Senator Aliyu Wadada, for the first time after failing to honour three prior invitations. The repeated absences had prompted threats of a possible arrest warrant before Tuesday’s appearance.
The GCEO explained that being only 100 days into his role, he lacked full context on the figures in the audit. “I need to understand the issues myself so I can respond appropriately. I will engage external auditors and relevant groups to reconcile the details,” he said. Ojulari initially requested four weeks to respond but was granted a three-week deadline.
Central to the Senate’s inquiry are inconsistencies and ambiguities surrounding the reported N210 trillion in assets and liabilities. Of particular concern are two categories: accrued expenses, amounting to N103 trillion, and receivables, valued at N107 trillion.
Wadada explained that the accrued expenses category included items like legal fees, auditor fees, and retention costs. While retention fees—usually 5% of contract sums—were pegged at over N600 billion, no records were presented to support which contracts warranted those amounts. Similarly, no documentation was provided to justify legal or audit fees.
Even more troubling for the committee was a last-minute submission by NNPCL shortly before Tuesday’s meeting. Wadada revealed that the company introduced a new document contradicting the earlier audited report. “This is very ridiculous and unacceptable by the committee,” he said, citing concerns over credibility.
Wadada stressed that every query from the committee was based solely on findings within the NNPCL’s audited statements. “These are not questions from the blues. The figures are in black and white, yet they raise more confusion than clarity,” he noted.
He emphasized the implications of these figures for national development. “We are in a country where the government is desperate for funds to drive critical reforms. How can we reconcile these mind-boggling sums in a time when accountability is paramount?”
The lawmaker underscored the need for thorough financial transparency, especially under President Bola Tinubu’s administration. “This government is pursuing the Renewed Hope Agenda, which cannot be achieved without financial discipline. We owe it to Nigerians to get to the bottom of this,” he said.
Ojulari is now expected to return to the committee within three weeks with a comprehensive response, including documentation and clarifications regarding all questionable figures in the NNPCL’s financial records.
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