No Evidence of N210tn Missing from NNPC Books, Wunti Tells Senate Panel

NNPC Missing Funds allegations surrounding the Nigerian National Petroleum Company Limited (NNPC Ltd.) have no basis in the company’s audited financial statements, according to former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Bala Wunti.

Speaking before the Senate Committee reviewing NNPC Ltd.’s 2023 audited accounts, Wunti dismissed widespread claims that N210 trillion had disappeared from the national oil company’s books, describing the allegation as a result of a fundamental misunderstanding of accounting principles and financial reporting standards.

Presenting his findings to lawmakers, Wunti said he conducted a detailed review of the audited accounts and found no reference to any missing N210 trillion.

“I have gone through this document page by page. I have not found where N210 trillion was mentioned.”

According to him, the controversial figure emerged after two separate balance-sheet entries were incorrectly combined and interpreted as missing funds.

He explained that approximately N107 trillion represented sundry receivables, which are funds owed to NNPC Ltd. by third parties, while another N103 trillion represented accrued expenses, which are liabilities owed by the company to other entities.

Wunti stressed that under internationally accepted accounting standards, both items serve different purposes and must be reported separately.

“Receivables are money other people owe you. Accrued expenses are money you owe other people. Accounting standards require these items to be reported separately. They cannot simply be added together and described as missing money.”

He told the committee that the interpretation created a misleading narrative that suggested funds had vanished when, in reality, the figures reflected standard accounting disclosures.

The Senate committee invited Wunti to provide an independent assessment of NNPC Ltd.’s audited financial statements and offer technical clarification on issues raised during the review process.

Although he acknowledged that his tenure did not cover the entire audit period, Wunti said his years overseeing upstream investments gave him substantial familiarity with the company’s reporting systems and accounting structure.

The Senate review forms part of broader efforts to strengthen transparency and accountability within Nigeria’s oil and gas sector following the transformation of the former Nigerian National Petroleum Corporation into a limited liability company under the Petroleum Industry Act (PIA).

The committee is expected to determine whether additional investigations or clarifications will be required after examining submissions from relevant stakeholders.

Why NNPC’s Financial Statements Are Different

Wunti argued that many of the controversies surrounding NNPC Ltd.’s accounts stem from the unique nature of the company’s operations.

Unlike conventional corporations, he said, NNPC Ltd. performs multiple functions that require separate accounting treatments and reporting frameworks.

According to him, the company serves simultaneously as a commercial enterprise, custodian of national oil and gas assets and strategic energy institution.

“NNPC Ltd. simultaneously functions as a commercial business, serves as custodian of Nigeria’s oil and gas assets on behalf of the Federation and performs strategic national energy security responsibilities.”

He explained that these overlapping responsibilities make the company’s financial statements more complex than those of ordinary private-sector firms.

The former NAPIMS chief also noted that while the Petroleum Industry Act separated many of the regulatory and commercial functions previously housed within the former NNPC, certain reporting complexities remain because the company still manages assets on behalf of the federation.

Wunti Clarifies N5.8bn Incorporation Cost Controversy

He told lawmakers that no fraud allegations or cases of missing funds were reported during the period he supervised upstream investment operations.

“There was no reported fraud or money missing throughout the period under my stewardship.”

Beyond the N210 trillion allegation, Wunti also addressed reports suggesting that NNPC Ltd. spent N5.8 billion to complete its incorporation after the implementation of the Petroleum Industry Act.

According to him, the actual payments made to government agencies amounted to approximately N2.45 billion.

He explained that the payments covered statutory obligations to the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS), including filing fees and stamp duties.

“The only money paid was about N2.45 billion, and it went directly to government institutions. No third party received any payment.”

Wunti said the larger N5.8 billion figure emerged because the same transaction appeared across different accounting records maintained by separate units of the organisation.

According to him, one arm of the company paid the statutory charges on behalf of government shareholders, while another reflected the same transaction within its financial reporting records.

He argued that greater understanding of the company’s accounting framework and legal structure would improve the interpretation of its financial statements.

According to him, many misconceptions surrounding NNPC Ltd.’s accounts arise from limited understanding of the Petroleum Industry Act and the reporting obligations it imposes on the company.