Advertisement

How Bala Wunti Debunked N210trn ‘Missing Money’ Claims, Explained NNPC Accounts to Senate

Former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Bala Wunti, has dismissed claims that N210 trillion is missing from the 2023 audited financial statements of the Nigerian National Petroleum Company (NNPC) Limited, describing the allegation as a fundamental misunderstanding of standard accounting principles.

Appearing before the Senate Committee reviewing NNPC’s 2023 audited financial statements on Tuesday, Wunti gave a detailed explanation of the figures in the company’s accounts, insisting that the controversial amount was never reported as missing money.

According to him, a careful review of the audited financial statements—undertaken at the committee’s request—revealed no evidence whatsoever to support allegations that N210 trillion had disappeared from the company’s books.

“I carefully reviewed the financial statements and found no reference anywhere indicating that N210 trillion is missing,” Wunti told lawmakers.

Accounting Misinterpretation Behind the Controversy

The former NAPIMS boss explained that the disputed figure emerged from an erroneous addition of two completely different balance sheet items.

He said the N107 trillion recorded as sundry receivables represents money owed to NNPC by various entities, while approximately N103 trillion listed as accrued expenses represents obligations owed by the company to other parties.

“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.”

He stressed that neither figure represented missing funds, but standard accounting entries required under internationally accepted financial reporting practices.

Complex Nature of NNPC’s Accounts

Wunti further explained that NNPC’s accounting framework differs significantly from that of conventional commercial enterprises because of the company’s unique statutory responsibilities.

He noted that beyond operating as a commercial entity, NNPC also manages petroleum assets on behalf of the Federation while simultaneously performing strategic national energy security functions.

According to him, although the Petroleum Industry Act (PIA) separated many of the former NNPC’s commercial and regulatory responsibilities, the company still maintains separate accounting records to distinguish commercial operations from assets managed on behalf of the Federal Government.

His explanation sought to provide lawmakers with a clearer understanding of the structure of the company’s financial statements and the legal framework guiding its operations.

Clarifies N5.8bn Incorporation Claim

Wunti also dismissed reports alleging that N5.8 billion was spent to incorporate NNPC Limited following the implementation of the Petroleum Industry Act.

Providing a breakdown of the transaction, he said the actual statutory payments made to the Corporate Affairs Commission (CAC) and the relevant revenue authorities for filing fees and stamp duties amounted to approximately N2.45 billion.

He explained that the larger figure resulted from accounting entries recorded in different books because one arm of the organisation processed the payment on behalf of government shareholders, while another reflected the same transaction for statutory reporting purposes.

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

Calls for Better Understanding of NNPC’s Financial Framework

Wunti urged stronger collaboration among NNPC Limited, the Office of the Accountant-General of the Federation and the Office of the Auditor-General of the Federation to improve public understanding of the company’s accounting framework.

He also advocated a broader appreciation of the Constitution, the Petroleum Industry Act and other statutes governing the company’s operations to prevent future misinterpretations of its financial statements.

Senate: No Evidence of Missing N210trn

Chairman of the Senate Committee, Senator Ibrahim Dankwambo, said the panel had not found evidence to support claims that N210 trillion was missing from NNPC’s accounts.

Dankwambo explained that the ongoing legislative review was designed to enhance transparency and properly understand the company’s audited financial statements rather than validate allegations of missing funds.

He said the committee would study Wunti’s written submission alongside the audited financial statements before deciding whether additional clarifications would be required.

The committee had earlier given the external auditors of NNPC one week to provide a detailed breakdown of more than N210 trillion recorded as receivables and payables in the company’s 2023 audited financial statements as part of its oversight responsibilities.