No N210trn missing from NNPC accounts, ex-NAPIMS GM tells senate committee

By Henry Umoru

ABUJA – FORMER Group General Manager (GGM) of the National Petroleum Investment Management Services (NAPIMS), Bala Wunti, has disclosed that there was no evidence in the 2023 audited financial statements of the Nigerian National Petroleum Company (NNPC) Limited to support claims that N210 trillion went missing from the company’s accounts.

Wunti, who made this disclosure when he appeared before the Senator Ibrahim Dankwambo (Gombe North)-led Senate Committee on Public Accounts during the review of NNPC’s 2023 audited financial statements, said he had reviewed the accounts at the committee’s request and found no reference to any missing N210 trillion.

NAPIMS, now known as NNPC Upstream Investment Management Services (NUIS), is a former unit of NNPC Limited tasked with managing the federal government’s investments in the upstream oil and gas sector. The firm oversees joint ventures (JVs) and production sharing contracts (PSCs) with international oil companies.

Wunti, who noted that the controversial figure resulted from a misinterpretation of accounting entries rather than evidence of missing funds, said the N210 trillion figure was derived by wrongly adding together two separate balance sheet items — N107 trillion recorded as sundry receivables, representing funds owed to the company, and about N103 trillion recorded as accrued expenses, representing liabilities owed by the company.

“Receivables are money other people owe you, while accrued expenses are money you owe other people,” he said.
“Accounting standards require that these items be reported separately. They cannot simply be added together and described as missing money.”

According to Wunti, there was no basis for the allegation that N210 trillion had disappeared from NNPC’s books, noting that the audited financial statements contained no evidence of missing funds. He added that although his tenure did not cover the entire period under review, it fell significantly within the timeframe being examined, placing him in a position to explain the accounting issues before the committee.

The former NAPIMS boss said NNPC’s financial reporting is more complex than that of a conventional commercial enterprise, as the company simultaneously operates as a commercial entity, manages petroleum assets on behalf of the federation, and performs strategic responsibilities aimed at safeguarding Nigeria’s energy security.

Wunti, who headed NAPIMS from March 2020 before becoming Chief Offshore Investment Officer of NNPC Upstream Investment Management Services until December 2024, maintained that throughout his stewardship, 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 told the committee.

He said that although the Petroleum Industry Act (PIA) separated many of the former NNPC’s commercial and regulatory functions, the company still maintains distinct accounting records to reflect its commercial activities and its management of assets held on behalf of the federation.

Wunti also denied reports that N5.8 billion was spent on incorporating NNPC following the implementation of the PIA, saying that the actual statutory payments made to the Corporate Affairs Commission (CAC) and the Nigeria Revenue Service (NRS) for filing fees and stamp duties amounted to about N2.45 billion. He explained that the higher figure being circulated resulted from accounting entries recorded in separate books because one arm of the organisation executed the payment on behalf of government shareholders while another recorded 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.

Wunti urged closer collaboration between NNPC, 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 a broader appreciation of the Constitution, the PIA, and other relevant statutes governing the company’s operations.

In his remarks, Chairman of the Committee, Senator Dankwambo, who noted that the committee had not found evidence that any money was missing from NNPC accounts, said the ongoing review was intended to ensure transparency and achieve a proper understanding of the company’s audited financial statements rather than validate claims of missing funds.

Dankwambo said the committee would study Wunti’s written submission alongside the 2023 audited financial statements before determining whether any further clarification would be required. The committee subsequently adjourned to continue its review of the submissions.

The Senate’s ongoing examination of NNPC Ltd.’s 2023 audited accounts has attracted significant public attention amid allegations of financial irregularities and conflicting interpretations of figures contained in the company’s audited financial statements.

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