………FRC urged to scrutinise NNPCL financial statements and reconcile N210tn figures as Senate continues probe into N103tn payables and N107tn receivables
Jim Osayande Obazee has called on the Financial Reporting Council of Nigeria to independently examine the controversial N210 trillion contained in the financial statements of the Nigerian National Petroleum Company Limited and provide Nigerians with a definitive explanation of the figures.
Obazee made the call on Tuesday, September 1, 2026, in Lagos, while speaking at the official commissioning of the FRC headquarters, where the Council honoured him by naming its Inspections and Investigation Room after him. He said the National Assembly should have referred the matter to the financial reporting regulator for professional scrutiny, adding that the FRC could also independently obtain the relevant financial statements and review them.
“Finally, the second issue, I have read in the open-source media that the National Assembly has been expressing concern over the sum of N210 trillion in the financial statements of the Nigerian National Petroleum Company Limited (NNPCL),” Obazee said. “I had expected the National Assembly to refer the matter to the FRC. If they have not, I believe that the management of the FRC should by themselves demand for these financial statements from the NNPCL, review them and give Nigerians a proper closure.”
The controversy centres on about N107 trillion recorded as receivables and N103 trillion listed as payables or accrued expenses in NNPCL’s audited financial statements. Although the combined figure has widely been described in public discussions as “missing” money, the Senate Public Accounts Committee has clarified that its investigation does not establish that N210 trillion was stolen or physically disappeared. Rather, lawmakers want NNPCL and its auditors to explain the origin, composition and supporting documentation for the two figures.
The Senate inquiry intensified in July when the Public Accounts Committee gave the external auditors of NNPCL one week to provide detailed schedules and supporting documents for the disputed figures. The directive followed a tense hearing on July 15, during which the auditors requested about two weeks to retrieve the documents supporting the financial statements they had certified. The committee rejected the request, insisting that auditors who signed off on the accounts must be able to defend the figures contained in them.
Lawmakers were particularly concerned that the N107 trillion receivables and N103 trillion payables had not been sufficiently broken down into identifiable transactions, counterparties and supporting calculations. The auditors argued that some of the requested information formed part of their working papers and maintained that NNPCL remained their client. The committee, however, insisted that the auditors were appearing in an independent professional capacity and had a responsibility to explain the audit opinions they issued.
The committee also invoked Sections 88 and 89 of the 1999 Constitution, which empower the National Assembly to conduct investigations and summon persons or demand documents relevant to matters under its oversight. The lawmakers maintained that the fact that NNPCL is wholly owned by the Federal Government makes transparency in its financial records a matter of public interest. Senate Public Accounts Committee Chairman Ibrahim Dankwambo subsequently stressed that the committee was seeking explanations and reconciliation, not declaring that the N210 trillion had been stolen.
NNPCL has previously explained that the N103 trillion figure relates to accrued expenses associated with joint venture cash calls, while the N107 trillion was recorded as receivables. However, the Senate has demanded more detailed information showing the specific transactions behind the figures, the parties involved and how the amounts accumulated over time. The demand has kept the controversy alive because the explanations provided so far have not, in the view of the lawmakers, sufficiently reconciled the entries in the audited accounts.
The accounting distinction between the two figures is also important. Receivables generally represent money expected to be received by a company, while payables or accrued expenses represent obligations owed by the company. A former NAPIMS chief, Bala Wunti, told the Senate in July that there was no evidence in the 2023 audited accounts showing that N210 trillion had gone missing, arguing that the controversy resulted from combining two separate balance-sheet items.
For Obazee, however, the existence of an accounting explanation does not remove the need for a thorough regulatory examination. He said the relevant financial statements should be obtained and professionally reviewed so that the public can understand exactly what the figures represent, how they were recognised and whether the accounting treatment complied with applicable standards.
His intervention also formed part of broader concerns he raised about the quality of financial reporting by major public institutions. Earlier in his speech, Obazee criticised aspects of the Central Bank of Nigeria’s 2025 financial statements, raising concerns about issues including accounting policies, disclosures, comparability of figures, corporate governance, earnings recognition and auditor independence.
Obazee argued that financial statements prepared by institutions managing public resources must provide reliable information that enables citizens, investors, regulators and government to understand their true financial position.
Obazee further reminded the FRC of its statutory responsibilities, including the powers provided under Section 8(1)(e) of the Financial Reporting Council of Nigeria Act, 2011, which empowers the Council to advise the Federal Government on matters relating to accounting and financial reporting standards.
He argued that the NNPCL controversy falls within the broader responsibility of ensuring credible financial reporting and that the Council should be proactive rather than wait indefinitely for a formal referral from the National Assembly.
Ultimately, Obazee said the country needs more than another round of hearings, accusations and explanations over the N210 trillion figure.
He wants the underlying financial statements examined, the N103 trillion payables and N107 trillion receivables traced and reconciled, the supporting documents scrutinised and the findings clearly communicated to Nigerians. “I believe that the management of the FRC should by themselves demand for these financial statements from the NNPCL, review them and give Nigerians a proper closure,” he said.
