Former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Alhaji Bala Wunti, has assured the Senate that no ₦210 trillion is missing from the Nigerian National Petroleum Company Limited (NNPC Ltd.) accounts, describing the claim as a misunderstanding of standard accounting entries.
Testifying before the Senate Committee reviewing NNPC Ltd.’s 2023 audited financial statements, Wunti said a detailed page-by-page examination of the documents revealed no evidence of any missing funds.
He attributed the controversial ₦210 trillion figure to the incorrect addition of two separate balance sheet items: approximately ₦107 trillion in sundry receivables (money owed to the company) and ₦103 trillion in accrued expenses (liabilities owed by the company).
“Receivables are money other people owe you, while accrued expenses are money you owe other people,” Wunti explained. “Accounting standards require that these items be reported separately. They cannot simply be added together and described as missing money.”
Speaking under oath, the former NAPIMS chief, who also served as Chief Offshore Investment Officer of NNPC Upstream Investment Management Services (NUIMS) until December 2024, maintained that the audited statements contain no basis for the allegation of missing funds. Although his tenure did not cover the full review period, it overlapped substantially with the timeframe in question.
Wunti noted that NNPC Ltd.’s financial reporting is inherently more complex than that of typical commercial entities. The company operates simultaneously as a commercial player, manager of national petroleum assets on behalf of the Federation, and guardian of Nigeria’s energy security.
He highlighted that, despite the Petroleum Industry Act (PIA) separating certain functions, the company maintains distinct accounting records for its commercial activities and federation asset management.
Clarification on incorporation costsWunti also addressed reports claiming ₦5.8 billion was spent on incorporating NNPC Ltd. under the PIA.
He clarified that actual statutory payments to the Corporate Affairs Commission (CAC) and Federal Inland Revenue Service (FIRS) for filing fees and stamp duties totalled only about ₦2.45 billion.
The higher figure in circulation, he said, stemmed from internal accounting entries recorded in separate books for different purposes, one arm acting on behalf of government shareholders and another for statutory reporting. No funds went to any third party.
He called for improved collaboration between NNPC Ltd., the Office of the Accountant-General of the Federation, and the Office of the Auditor-General to foster better understanding of the company’s accounting framework, while urging greater appreciation of the Constitution, PIA, and other governing statutes.
Senate Committee positionChairman of the Senate Committee, Senator Ibrahim Dankwambo, affirmed that the panel had not found any evidence of missing money from NNPC Ltd.’s accounts.
He emphasised that the review aims to promote transparency and deeper understanding of the audited financial statements, not to substantiate claims of irregularities.
The committee will examine Wunti’s written submission alongside the 2023 accounts before deciding on any further clarifications. The Senate’s scrutiny of NNPC Ltd.’s 2023 financials has drawn significant public interest amid allegations of irregularities and differing interpretations of the figures.
SOURCE: NigerianEye