Senator Ibrahim Dankwambo, chairman of the Senate Committee on Public Accounts and representative of Gombe North, on Wednesday led lawmakers in demanding clarification from external auditors of the Nigerian National Petroleum Company Limited over more than N210 trillion recorded as receivables and payables in the company’s 2023 audited financial statements.

The Senate hearing, held in Abuja, focused on what lawmakers described as unexplained financial entries involving about N107 trillion in receivables and N103 trillion in payables.

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The committee said the figures required urgent reconciliation because the supporting details behind such large amounts had not been clearly presented.

The investigation has placed NNPC auditors scrutiny at the centre of questions surrounding how the financial statements were reviewed, certified and presented to stakeholders.

The committee stressed that the inquiry was not an allegation that funds were missing but an effort to establish the origin, ownership and justification of the reported figures.

“We are not saying the money is missing. We are saying the figures remain unexplained,” Dankwambo said during the hearing. “For amounts of this magnitude to remain unreconciled in audited financial statements is deeply concerning.”

The auditors told lawmakers that they needed additional time to retrieve schedules and working papers supporting the figures.

Representatives of the audit firm said some explanations would normally come from NNPC because the company remained their client.

The position drew strong reactions from members of the committee, who argued that auditors had a professional responsibility to explain the basis of financial opinions they had issued.

Abdul Ningi, senator representing Bauchi Central, referred to Sections 88 and 89 of the 1999 Constitution, which empower the National Assembly to summon individuals and request relevant documents during investigations.

“You are before this committee as independent auditors. Do not tell us you must first seek permission from your client before complying with the lawful request of parliament,” Ningi said.

Victor Umeh, senator representing Anambra Central, also challenged the auditors’ position, saying their responsibility extended beyond the company they reviewed.

“You are here as an auditor, and you are here on your own,” Umeh said. “Anything you need to do here to save yourself, you need to do it.”

Adams Oshiomhole, senator representing Edo North, said the concerns raised by lawmakers were directly connected to the audit work that produced the financial statements.

“The alarms were raised because of the work you people performed,” Oshiomhole said. “These figures came from your audit. Therefore, you cannot tell this committee that you must consult your principal before responding.”

NNPC has previously explained that some of the reported balances relate to joint venture cash calls and related petroleum industry transactions.

However, lawmakers said the company had not provided sufficient details identifying the specific parties involved or the individual transactions making up the figures.

The committee’s demand comes amid wider efforts by Nigeria’s legislature to strengthen oversight of public institutions and improve transparency in government-linked enterprises.

NNPC, which transitioned from a corporation to a limited company under the Petroleum Industry Act in 2021, remains a major player in Nigeria’s oil sector and a significant contributor to national revenue.

The dispute has also renewed attention on the role of external auditors in safeguarding confidence in public financial reporting.

Dankwambo referenced the collapse of international accounting firm Arthur Andersen following the Enron scandal, warning that auditors must be prepared to defend opinions they sign off.

The Senate committee has given the auditors one week to return with a detailed schedule explaining the N107 trillion receivables and N103 trillion payables, including supporting documents and the basis for certifying the accounts.

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The outcome of the review could influence future expectations for financial disclosure, accountability and audit standards among Nigeria’s state-owned enterprises.