The Senate has rejected the explanations provided by the Nigerian National Petroleum Company Limited (NNPCL) regarding the ₦210 trillion outstanding against the oil firm.

It came to the conclusion on Wednesday that the money, which had not been accounted for, must be refunded to the Federation Account by the company.

The Senate Committee on Public Accounts chaired by Aliyu Wadada, which has been on the probe for months, took the decision on Tuesday after the Group Chief Executive Officer (GCEO) of the NNPCL, Bayo Ojulari, failed to turn up at its resumed sitting at the National Assembly.

The session was called to give the NNPCL the opportunity to make clarifications on the answers the company provided to the 19 questions the panel asked the firm about the ₦210 trillion.

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Following a review of the operations of the NNPCL from 2017-2023, the committee sighted the unexplained transaction, totaling ₦103 trillion (accrued expenses) and ₦107 trillion (receivables) in the audited financial statements of the firm, prompting it to raise the queries.

After weeks of back-and-forth between the committee and the NNPCL, the NNPCL eventually responded to the 19 questions.

However, at a resumed session, Senator Wadada frowned at the absence of  Ojulari, whom the committee said gave no reasons for staying away, consequently rejected the explanations.

The Chairman of the committee, Senator Aliyu Wadada, while speaking on the panel’s findings, said the responses were not only unsatisfactory, but were also contradictory.

“NNPC claimed ₦103 trillion as accrued expenses and ₦107 trillion as receivables -amounting to ₦210 trillion. On question eight, NNPC’s explanation on the ₦107 trillion receivables -equivalent to about $117 billion -contradicts available facts and evidence provided by NNPC itself. The committee is duty-bound to reject this,” he stated.

Wadada further questioned how the firm could pay ₦103 trillion in Cash Calls to Joint Venture (JV) partners in 2023 alone, despite generating only ₦24 trillion in crude revenue between 2017 and 2022.

“Cash Call arrangements were abolished in 2016 under the President Muhammadu Buhari administration. How can NNPC claim to have paid ₦103trn in one year, when it only generated ₦24trn in revenue over five years? Where did NNPC get that money?

“As far as this committee is concerned, that figure is unjustifiable and unacceptable. The ₦103 trillion must be returned to the Treasury. This will be concluded when the NNPCL appears before us,” he stated.

The committee said it would have been better for the current management of the NNPCL to admit that it encountered challenges in explaining what happened to the funds than giving contradictory answers to the questions.

“If the present management of NNPCL is finding it difficult to provide acceptable answers, it is better they say so. The committee will not hesitate to subpoena former officials of NNPCL and NAPIMS,” Wadada added.