The Chief Financial Officer of the Nigerian National Petroleum Company Limited (NNPCL), Adedapo Segun, has offered an explanation regarding the missing N210 trillion flagged in the company’s audited financial statements covering the period from 2017 to 2023. However, his response has drawn sharp criticism from financial experts and stakeholders, who consider the justification inadequate and troubling.
Senate Demands Explanation for N210 Trillion Gap
The issue surfaced during a Senate Committee on Public Accounts session held on Wednesday, chaired by Senator Aliyu Wadada. The committee had earlier expressed deep concern over unexplained figures amounting to N210 trillion in NNPCL’s consolidated financial statements. In response, Senator Wadada had issued a one-week ultimatum to the company to clarify the discrepancies.
Speaking during the committee’s probe, CFO Segun addressed the concerns, asserting that the missing sums were related to joint venture (JV) cash calls—requests by JV partners for funding obligations—and settlements made by NNPCL, which had not yet been reconciled due to governance lapses at the time.
NNPCL CFO Offers Technical Explanation
Segun stated, “The N103 trillion and N107 trillion are made up of joint venture cash calls that have been requested by the JV operators and JV cash call payments made by NNPCL, which are yet to be reconciled because governance procedures were not done at that time.”
He further explained that the figures, while appearing as two separate items in the audited statements, were in fact two sides of the same transaction, which he claimed would eventually cancel each other out upon reconciliation.
“These two items would be washed out because they reflect the same transaction — the cash calls by JV partners and the corresponding payments by NNPCL,” he said.
Financial Experts Raise Red Flags
Despite the CFO’s attempt at clarification, industry analysts have expressed serious doubts over the accuracy and transparency of NNPCL’s financial disclosures. Prominent financial analyst Habu Sadeik took to X (formerly Twitter) on Thursday to voice strong reservations, labeling Segun’s explanation as “not satisfactory.”
“Forget about the senators’ lack of knowledge,” Sadeik posted. “The CFO’s response is not satisfactory. Are you saying that cash calls worth hundreds of trillions are just appearing in your financial statement in 2024 without any note 31 disclosure?”
He went on to question the magnitude and classification of the amounts: “If it’s a cash call, why hasn’t the disclosure said so? Which cash call is over N100 trillion? Something is definitely not right, and I hope they retrospectively correct that FS [Financial Statement]. Someone somewhere did a chef’s work.”
Audited Financial Statement Under Scrutiny
The NNPCL’s financial records have come under growing scrutiny, particularly after the company transitioned into a limited liability company under the Petroleum Industry Act (PIA), 2021. As a commercially oriented entity, NNPCL is now expected to operate with greater accountability, transparency, and adherence to global financial reporting standards.
However, the presence of an unexplained N210 trillion discrepancy in audited financials directly undermines these expectations. Critics argue that such a vast sum, if genuinely a matter of unreconciled JV cash calls, should have been clearly detailed with explanatory notes and reconciliations across the relevant accounting periods.
Senators and Stakeholders Demand Accountability
Following Segun’s appearance before the committee, Chairman Wadada reiterated the committee’s concerns, suggesting that the CFO’s explanation fell short of providing the necessary transparency.
“While we appreciate the attempt to clarify, the nature of this discrepancy demands forensic auditing. Nigerians need to know exactly how these figures were recorded and why they were not reconciled over the course of several years,” Wadada said.
Several civil society organizations have also called for an independent audit of the NNPCL’s financial operations, particularly those involving joint venture arrangements, which have historically been criticized for their opacity.
JV Cash Calls: A Brief Background
Joint venture cash calls refer to requests made by oil exploration partners—usually international oil companies (IOCs)—to the NNPC (now NNPCL) for funds required to cover Nigeria’s share of ongoing oil and gas operations. These cash calls have long been a source of friction due to delays, underfunding, and alleged mismanagement.
To resolve this, Nigeria adopted Alternative Financing Mechanisms (AFM) and Self-Funding Arrangements in recent years, which are supposed to minimize cash call issues. The return of massive unresolved JV figures in the audited statements suggests that legacy issues may have been carried over or inadequately addressed.
What Happens Next?
With the one-week ultimatum still active, the Senate Committee on Public Accounts is expected to reconvene and possibly summon additional NNPCL executives or external auditors for more comprehensive testimony. Stakeholders insist that any claims of reconciliations must be backed by documentary evidence, including inter-company balances, payment receipts, and detailed transaction logs.
In the meantime, Nigerians are watching closely, with concerns growing about how a staggering N210 trillion could slip through the books of the country’s most strategic enterprise without detection or disclosure—until now.
Final Thoughts
As the NNPCL navigates its new era as a limited liability company, the credibility of its financial statements will serve as a benchmark for its corporate governance practices. The unfolding issue of missing trillions not only threatens that credibility but also raises broader questions about accountability in Nigeria’s extractive sector.
Without clear answers, forensic reconciliation, and possible disciplinary actions where necessary, public trust in NNPCL—and in broader government fiscal responsibility—risks further erosion.
