A former senior executive at Nigeria’s state oil company has categorically denied claims that N210 trillion has gone missing from corporate accounts, telling lawmakers that the staggering figure resulted from a fundamental misunderstanding of basic accounting principles. Alhaji Bala Wunti, who served as Group General Manager of the National Petroleum Investment Management Services, appeared before the Senate to defend the Nigerian National Petroleum Company Limited’s 2023 audited financial statements amid growing public controversy over the alleged missing funds. His testimony, delivered under oath, was backed by Senator Ibrahim Dankwambo, the chairman of the Senate committee reviewing the accounts, who confirmed that investigators had found no evidence of any missing money.
Wunti told the committee he had conducted a meticulous, page by page examination of NNPC Ltd.’s financial records at their request and discovered that the controversial N210 trillion figure stemmed from an erroneous addition of two entirely separate balance sheet categories. Approximately N107 trillion recorded as sundry receivables, which represents funds that other entities owe to the company, had been incorrectly combined with roughly N103 trillion listed as accrued expenses, representing liabilities the company owes to others. Receivables and payables are fundamental accounting concepts that must be reported separately under elished financial standards. Simply adding these figures together and characterizing the sum as missing funds betrays a misunderstanding of how corporate balance sheets function.
The former NAPIMS chief, who led the division from March 2020 before transitioning to Chief Offshore Investment Officer of NNPC Upstream Investment Management Services until December 2024, emphasized that his tenure substantially overlapped with the period under examination. His position gave him intimate knowledge of the accounting structures and practices that have generated confusion among observers unfamiliar with the complexities of petroleum sector finance. NNPC Ltd. operates in a uniquely complicated regulatory environment that sets it apart from conventional commercial enterprises. Beyond its profit seeking activities, the company manages petroleum assets on behalf of the entire Federation and shoulders strategic responsibilities for safeguarding national energy security.
Although the Petroleum Industry Act was designed to separate commercial operations from regulatory functions previously bundled together under the old NNPC structure, the reformed company still maintains distinct accounting records to differentiate between its business activities and its stewardship of Federation assets. Wunti explained that financial reporting for such a hybrid entity necessarily appears more complex than standard corporate accounts, requiring readers to understand both commercial accounting principles and the specialized frameworks governing public asset management. Lawmakers heard that improved coordination between NNPC Ltd., the Office of the Accountant General of the Federation, and the Office of the Auditor General could help prevent future misinterpretations of the company’s financial statements.
Beyond addressing the N210 trillion controversy, Wunti also dispelled reports that N5.8 billion had been spent incorporating NNPC Ltd. following implementation of the Petroleum Industry Act. Actual statutory payments to the Corporate Affairs Commission and Federal Inland Revenue Service for filing fees and stamp duties totaled approximately N2.45 billion, he clarified. The inflated figure circulating in public discourse arose from accounting entries recorded in separate ledgers when one organizational arm made payments on behalf of government shareholders while another recorded identical transactions for statutory reporting purposes. All funds went directly to government institutions with no third party intermediaries receiving any portion of the payment, Wunti assured the committee.
Senator Dankwambo’s affirmation that the committee had uncovered no evidence of missing funds carries significant weight given the political sensitivity surrounding NNPC finances and the size of the alleged discrepancy. For years, Nigeria’s state oil company has faced criticism over transparency and accountability, with civil society organizations and international observers calling for greater disclosure of revenues, costs, and operational performance. Allegations of missing hundreds of trillions of naira naturally attract intense scrutiny in a country where oil revenues constitute a primary source of government funding and where citizens increasingly demand accountability from public institutions managing national resources.
Moving forward, the Senate committee’s findings should prompt a broader conversation about financial literacy among policymakers and the public when evaluating complex corporate accounts. Wunti’s call for enhanced collaboration between NNPC Ltd. and federal oversight agencies represents a practical step toward preventing future controversies rooted in accounting misunderstandings rather than actual malfeasance. As Nigeria continues implementing reforms under the Petroleum Industry Act, clear communication about the unique accounting requirements facing the transformed NNPC will be essential for maintaining public trust. Whether this episode damages confidence in the state oil company or ultimately strengthens transparency by clarifying its financial reporting practices may depend on how effectively legislators and executives explain these technical matters to ordinary Nigerians who fund government operations through their tax contributions and deserve straightforward answers about how their petroleum wealth is managed.
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