The Senate Public Accounts Committee has ordered a fresh reconciliation involving the Federal Ministry of Finance, Nigerian National Petroleum Company Limited and other petroleum agencies over unresolved financial issues raised by the Nigeria Extractive Industries Transparency Initiative.
The dispute centres on queries contained in NEITI’s 2021 to 2023 oil and gas audit reports.
Among the major issues are a $3 billion pre export financing loan obtained in 2012, $722.6 million in Nigeria LNG dividends and interest, refinery rehabilitation spending and more than $221 million in overhead costs linked to the former National Petroleum Investment Management Services.
The Finance Ministry told the committee that it could not fully respond because NNPCL, the Nigerian Upstream Petroleum Regulatory Commission and other relevant agencies had not provided all the financial records required for reconciliation.
Permanent Secretary Raymond Omachi said the ministry had engaged Arthur Andersen to conduct a forensic review of the disputed transactions.
The committee, however, expressed concern that the audit had taken longer than expected after previous deadlines were extended.
NEITI had questioned whether the $722.6 million paid by Nigeria LNG to NNPC in 2021 was properly remitted to the Federation Account.
The audit also observed that Nigeria’s refineries were not operating in 2021 despite substantial rehabilitation expenditure.
Omachi asked the Senate to use its constitutional powers to compel the agencies involved to appear together so that the transactions could be examined directly.
Committee Chairman Ibrahim Dankwambo directed the ministry to arrange a joint reconciliation meeting involving all relevant institutions.
He said the outstanding issues had implications for public confidence and Nigeria’s international reputation and urged the agencies to produce the necessary documents and resolve the discrepancies.
