Ex-NAPIMS Boss Tells Senate No ₦210 Trillion Is Missing from NNPC Accounts
No Evidence of ₦210 Trillion Missing from NNPC Accounts, Former NAPIMS Executive Tells Senate
Former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Bala Wunti, has told the Senate Public Accounts Committee that there is no evidence to support claims that ₦210 trillion is missing from the 2023 audited financial statements of the Nigerian National Petroleum Company (NNPC) Limited. According to Wunti, the figure resulted from a misunderstanding of accounting entries rather than the disappearance of public funds.
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Wunti made the clarification while appearing before the committee chaired by Senator Ibrahim Dankwambo, which is reviewing NNPC Limited's 2023 audited financial statements following public concerns over large unreconciled figures contained in the accounts.
Accounting entries misinterpreted as missing funds
According to Wunti, his review of the audited financial statements found no reference to ₦210 trillion in missing funds. He explained that the controversial figure emerged after two separate balance sheet items were incorrectly combined.
He said approximately ₦107 trillion represented sundry receivables funds owed to NNPC by third parties while another ₦103 trillion represented accrued expenses, which are liabilities the company owes to other entities.
Wunti stressed that accounting standards require receivables and liabilities to be reported separately and that combining both figures to suggest missing money represents a misinterpretation of standard financial reporting principles.
Senate continues scrutiny of audited accounts
The clarification comes days after the Senate Public Accounts Committee directed NNPC's external auditors to provide a detailed breakdown of the receivables and payables recorded in the company's audited financial statements.
The committee had expressed concern that while the figures were classified as receivables and payables, supporting schedules explaining how they were derived had not been provided during earlier hearings. Lawmakers subsequently gave the auditors one week to submit detailed documentation supporting the entries.
Senate Chairman Ibrahim Dankwambo emphasised during the earlier hearing that the committee had not concluded that the money was missing, but rather sought adequate explanations for the large accounting figures contained in the audited statements.
NNPC's accounting structure differs from conventional companies
Wunti also told lawmakers that NNPC Limited operates under a more complex accounting framework than a typical commercial enterprise.
According to him, the company functions simultaneously as a commercial business, manages petroleum assets on behalf of the Federation and performs strategic national energy security responsibilities. These multiple roles require separate accounting records, making its financial reporting more complex than that of most private-sector organisations.
He noted that although the Petroleum Industry Act (PIA) separated many of the former NNPC's commercial and regulatory functions, the company continues to maintain distinct accounting records for commercial operations and assets held on behalf of the Federation.
Former executive disputes incorporation cost reports
Wunti also rejected reports suggesting that ₦5.8 billion was spent to incorporate NNPC Limited following the implementation of the Petroleum Industry Act.
He stated that the actual statutory payments made to the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS) for filing fees and stamp duties totalled approximately ₦2.45 billion.
According to him, the larger amount being reported resulted from accounting entries recorded in different books after one arm of the organisation made statutory payments on behalf of government shareholders while another recorded the same transaction for reporting purposes.
Call for stronger institutional coordination
The former NAPIMS executive urged closer collaboration among NNPC Limited, the Office of the Accountant-General of the Federation and the Office of the Auditor-General of the Federation to improve understanding of the company's accounting framework.
He also called for greater appreciation of the constitutional and statutory provisions governing NNPC's operations, particularly the Petroleum Industry Act, to reduce future misunderstandings regarding the company's financial reporting.
Outlook
The Senate's review of NNPC Limited's 2023 audited financial statements remains ongoing. While lawmakers continue to seek additional documentation explaining the receivables and payables recorded in the accounts, Wunti's testimony has challenged claims that ₦210 trillion disappeared from the company's books, arguing instead that the controversy stems from the interpretation of accounting entries rather than evidence of missing public funds.
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