The Senate has issued a one-week deadline to the external auditors of the Nigerian National Petroleum Company Limited (NNPC Ltd.) to provide a detailed explanation and supporting documents for more than ₦210 trillion in figures contained in the company’s audited financial statements.
Members of the Senate Committee on Public Accounts said the auditors, having certified the accounts, must submit the schedules and working papers used to arrive at the figures rather than directing lawmakers back to NNPC Ltd.
The directive was issued on Wednesday by the committee, chaired by Senator Ibrahim Dankwambo, during an ongoing review of NNPC Ltd.’s financial records.
The matter centres on two major balance sheet entries in the company’s audited accounts: about ₦107 trillion listed as receivables and approximately ₦103 trillion recorded as payables. Senators said the figures had remained insufficiently explained despite previous engagements with officials of the national oil company.
During the committee’s proceedings, lawmakers requested detailed schedules supporting the entries. Representatives of the external audit firm told the committee that the documents were contained in their working papers and asked for additional time, stating that retrieving them could take about two weeks.
The request was rejected by the lawmakers, who questioned why auditors could not immediately provide documents supporting financial figures they had already approved.
Senator Dankwambo said audited figures must be backed by clear documentation showing how they were calculated.
“When figures appear in financial statements, there must be supporting schedules showing how they were derived. If these documents are already part of your working papers, why do you need to go back before presenting them to this committee?” he asked.
The auditors explained that, under professional standards, NNPC Ltd. remained their client and that explanations regarding the figures would ordinarily come from the company. They also noted that during a previous appearance, it was agreed that NNPC officials would provide clarification on the accounts.
However, committee members disagreed with that position.
Senator Abdul Ningi (PDP, Bauchi Central), citing Sections 88 and 89 of the 1999 Constitution (as amended), said the National Assembly has the authority to summon individuals and organisations and demand documents required for investigations.
He said the auditors appeared before the committee as independent professionals and were expected to defend the audit opinions they issued on NNPC Ltd.’s financial statements.
The lawmakers maintained that the auditors could not avoid responsibility for the figures they had certified and ordered them to return within one week with the requested documentation and explanations.
