The Northern Youth Progressive Forum, NYPF, has challenged the claim by the Senate Public Accounts Committee that about ₦210 trillion in the accounts of the Nigerian National Petroleum Company Limited, NNPCL, was unaccounted for, urging a technical review of the figures.
Chairman of the Senate Public Accounts Committee, Senator Ahmed Wadada, had raised 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.
But the NYPF, in a statement signed by its representative, Aliyu Usman, said the figure being discussed appeared to stem from a misinterpretation of the national oil company’s financial statements.
The forum said it recognised the Senate’s constitutional oversight responsibility but stressed that the figures cited required careful technical examination to avoid misleading conclusions.
“We respect the Senate’s constitutional mandate for oversight, but we are deeply concerned by the figures being presented and the implications they carry for public understanding,” the statement said.
According to the group, the amount being mentioned was inconsistent with the country’s fiscal realities.
“Nigeria’s entire 2024 national budget stands at approximately ₦28.7 trillion. To suggest that a single entity lost ₦210 trillion—an amount nearly eight times the size of the national budget—raises serious questions that require careful financial clarification,” the forum stated.
It added that crude oil revenues generated by the federation between 2017 and 2023 did not cumulatively reach the ₦210 trillion figure cited.
The forum further argued that two financial items in NNPCL’s balance sheet may have been incorrectly interpreted by the committee.
It explained that about ₦103 trillion listed as accrued expenses represented cumulative multi-year obligations, including joint venture cash calls, production costs, royalties and technical service fees shared with international oil partners.
“These are not cash outflows that have disappeared. They are accounting entries reflecting obligations tied to production activities and partnerships within the oil and gas sector,” the forum said.
Similarly, the forum said the ₦107 trillion recorded as sundry receivables referred to funds owed to the national oil company.
“By definition, a receivable is money owed to a company. It includes outstanding subsidy claims and other obligations due to the NNPCL. Describing such entries as missing funds creates an inaccurate picture of the company’s financial position,” the statement added.
The forum also 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.
“A key milestone during that era was the publication of audited financial statements by the NNPCL after several decades. That development marked an important step toward greater transparency in the management of the nation’s oil resources,” it said.
The forum added that 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.
It called on the Senate Public Accounts Committee to adopt a more technical approach in its review of the oil company’s financial records.
“We urge the committee to engage in a sober and technical reconciliation of accounts rather than rely on figures that may not accurately reflect the underlying accounting classifications,” the statement said.
It also urged continued engagement between the committee and officials of the oil company to clarify the issues raised.
“Constructive dialogue and professional review of financial records will better serve the goal of transparency while preserving confidence in Nigeria’s public institutions and the oil and gas sector,” the forum added.
