Senate Probe: Ex-NAPIMS Boss Says ₦210tn Missing NNPC Funds Claim Misreads Audit

Former Group General Manager (GGM) of the National Petroleum Investment Management Services (NAPIMS), Bala Wunti, has told the Senate Public Accounts Committee that there is no evidence in the Nigerian National Petroleum Company (NNPC) Limited's 2023 audited financial statements to support claims that ₦210 trillion is missing from the company's accounts.

Appearing before the committee chaired by Senator Ibrahim Dankwambo (Gombe North), Wunti said his review of the audited accounts, undertaken at the committee's request, found no record indicating that such an amount had disappeared from the national oil company's books.

Instead, he explained that the widely circulated figure emerged from what he described as a misunderstanding of standard accounting entries contained in the financial statements.

According to Wunti, the ₦210 trillion figure was derived by incorrectly combining two separate balance sheet items that represent different accounting concepts.

He explained that approximately ₦107 trillion was recorded as sundry receivables, funds owed to NNPC by other entities while about ₦103 trillion represented accrued expenses, reflecting liabilities the company owes to other parties.

"Receivables are money other people owe you, while accrued expenses are money you owe other people," Wunti told lawmakers.

"Accounting standards require these items to be reported separately. They cannot simply be added together and described as missing money."

He maintained that the audited financial statements contained no evidence that the funds had been diverted or were unaccounted for.

Wunti noted that NNPC's financial reporting differs significantly from that of a conventional commercial enterprise because of the multiple responsibilities assigned to the company under Nigerian law.

According to him, the national oil company simultaneously operates as a commercial business, manages petroleum assets on behalf of the Federation, performs strategic functions aimed at safeguarding Nigeria's energy security.

He explained that although the Petroleum Industry Act (PIA) restructured the former Nigerian National Petroleum Corporation into a limited liability company and separated several commercial and regulatory responsibilities, the company still maintains distinct accounting records for its various functions.

The former NAPIMS chief served as head of the agency from March 2020 before becoming Chief Offshore Investment Officer of the NNPC Upstream Investment Management Services (NUIS) until December 2024.

He told the committee that throughout his tenure, there was no reported case of fraud or missing funds.

"There was no reported fraud or money missing throughout the period under my stewardship," he said.

Wunti also rejected reports alleging that ₦5.8 billion was spent to incorporate NNPC Limited following implementation of the Petroleum Industry Act.

He explained that the actual statutory payments made to the Corporate Affairs Commission (CAC) and the Nigeria Revenue Service (NRS) for incorporation-related filing fees and stamp duties amounted to approximately ₦2.45 billion.

According to him, the larger figure circulated in public discussions resulted from accounting entries recorded across separate books because one arm of the organisation executed payments on behalf of government shareholders while another recorded the same transaction for statutory reporting purposes.

"The only money paid was about ₦2.45 billion, and it went directly to government institutions. No third party received any payment," he said.

Wunti urged stronger collaboration among NNPC Limited, the Office of the Accountant-General of the Federation (OAGF) 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 legal provisions governing NNPC's operations, particularly those contained in the Petroleum Industry Act.

Chairman of the Senate Public Accounts Committee, Senator Ibrahim Dankwambo, said the committee had not established evidence indicating that funds were missing from NNPC's accounts.

He stressed that the ongoing review is intended to enhance transparency and properly understand the company's audited financial statements rather than validate allegations already circulating in the public domain.

Dankwambo said the committee would study Wunti's written submissions alongside the 2023 audited accounts before deciding whether further clarification would be required.

The committee subsequently adjourned proceedings to continue its examination of the financial statements.