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🇳🇬 Nigeria /Economy & Trade

Senate Gives NNPC Auditors One Week to Justify N210 Trillion in Unexplained Entries

From ThisDay · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • The Nigerian Senate's Public Accounts Committee has given NNPC auditors one week to justify over N210 trillion in unexplained balance sheet entries.
  • Auditors must provide supporting documents for figures they certified, as lawmakers invoked constitutional oversight powers.
  • The committee rejected claims of confidentiality and the auditors' request for more time to retrieve working papers.

The Nigerian Senate's Public Accounts Committee has issued a stern one-week ultimatum to the external auditors of the Nigerian National Petroleum Company Limited (NNPC Ltd.). The auditors must provide a detailed breakdown of over N210 trillion recorded as receivables and payables in the company’s audited financial statements, which remain unexplained and unreconciled.

When you have figures in the financial statements, there must be supporting schedules showing how those figures were arrived at. If you already have them in your working papers, why do you need to go back before presenting them to this committee?

— Senator Ibrahim DankwamboQuestioning the auditors' inability to immediately produce supporting documents for NNPC's financial figures.

Chaired by Senator Ibrahim Dankwambo, the committee insisted that the auditors must produce the schedules, working papers, and supporting documentation used to certify the accounts. Lawmakers stressed that the auditors cannot defer responsibility to NNPC after endorsing the financial statements, which include approximately N107 trillion in receivables and N103 trillion in payables.

The Constitution empowers this committee to invite any person and request any document necessary for our investigation.

— Senator Abdul NingiCiting constitutional powers to compel the production of documents during the hearing.

The hearing grew tense when representatives from the external audit firm requested about two weeks to retrieve the detailed schedules, stating they were part of their working papers. Senator Dankwambo questioned the delay, asking why documents supporting figures already certified could not be immediately produced. The auditors argued that NNPC Ltd., as their client, should provide explanations, recalling a prior agreement for NNPC officials to address the entries.

You are before this committee as independent auditors. Do not tell us you must first seek permission from your client before complying with the lawful request of Parliament.

— Senator Abdul NingiInstructing the auditors on their obligation to Parliament.

However, the committee rejected this stance, asserting that the auditors, acting in their independent professional capacity, are obligated to defend their audit opinions. Senator Abdul Ningi cited constitutional provisions granting the National Assembly extensive investigative powers, emphasizing that the committee could summon individuals and compel document production. Senator Adams Oshiomhole reminded the auditors that the controversy stemmed directly from their work, urging them to comply with Parliament's lawful request without seeking client permission.

The alarms were raised because of the work you people performed. Thes

— Senator Adams OshiomholePointing out that the controversy originated from the auditors' work.
DistantNews Editorial

Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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