By Fola Adeoluwa

The continued failure of the Nigerian National Petroleum Company Limited (NNPC Ltd.) to honour invitations from the Senate Committee on Public Accounts has raised fresh concerns about transparency, accountability and corporate governance in Nigeria's most strategic state-owned energy company. While the company has yet to publicly explain its absence, the issue goes beyond a missed parliamentary appearance. It touches on the fundamental principle that every public institution, regardless of its commercial status, remains accountable for the management of public resources.


The latest controversy began when the Senate Committee on Public Accounts invited the management of NNPC Ltd. to explain issues arising from the company's audited financial statements covering the period between 2017 and 2023. The Committee's review of the reports reportedly identified about ₦210 trillion in unreconciled receivables and payables, figures that lawmakers considered significant enough to warrant detailed clarification from the company's leadership.

The Committee, chaired by Senator Ahmed Wadada Aliyu, subsequently invited the Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, and other top management officials to appear before lawmakers. The invitation was not based on allegations of wrongdoing but on the constitutional responsibility of the National Assembly to scrutinise public accounts and ensure that public institutions comply with financial reporting standards.


Rather than appearing before the committee as expected, reports indicate that NNPC Ltd.'s management failed to attend several scheduled hearings. The repeated absence drew sharp criticism from members of the committee, who questioned why one of the country's most important public enterprises would ignore invitations from the legislature. Frustrated by the development, the Committee warned that it could invoke constitutional powers available to the Senate to compel attendance.


The matter took another turn when the committee extended its inquiry to NNPC Ltd.'s external auditors, directing them to provide detailed explanations and supporting documents relating to the figures contained in the audited accounts. While auditors can explain how financial statements were prepared and certified, they cannot replace the management of an organisation in answering operational and policy questions. Those responsibilities remain with the company's executives.


Though, internal preparations, legal consultations or the need to compile extensive documentation may be among the factors delaying the organization. However, without an official explanation from the company, public speculation continues to grow, creating unnecessary uncertainty around an issue that could have been addressed through direct engagement with lawmakers.


It is important to recognise that NNPC Ltd. now operates as a limited liability company under the Petroleum Industry Act (PIA), 2021. Nevertheless, the company remains wholly owned by the Federal Government on behalf of Nigerians. Its operations affect government revenue, energy security, fuel supply, foreign exchange earnings and investor confidence. This unique position means the company cannot treat legislative oversight as optional.


Appearing before the Senate does not automatically imply guilt or financial misconduct because parliamentary oversight is a routine feature of democratic governance across the world. Public institutions are expected to answer questions, provide clarifications and supply documents whenever lawmakers exercise their constitutional oversight functions. Such engagements often help clear misconceptions, strengthen public confidence and improve institutional credibility.


The stakes are particularly high for NNPC Ltd. at a time when Nigeria is implementing far-reaching reforms in its oil and gas sector. The company has repeatedly pledged to operate with greater transparency, improve efficiency and attract investment. Those commitments can only be strengthened when the company willingly submits itself to legitimate public scrutiny.


Consequently, international investors closely monitor how national oil companies interact with oversight institutions. A perception that a state-owned energy company is reluctant to answer legitimate questions from parliament could undermine efforts to present Nigeria as a transparent and investment-friendly destination.


The Senate, on its part, must also ensure that the exercise remains professional, objective and evidence-based. Oversight should focus on establishing facts rather than creating unnecessary confrontation. Both institutions ultimately serve the same public interest and should work towards strengthening accountability in Nigeria's petroleum sector.

In view of the above, NNPC Ltd. should honour the Senate's invitation, present its explanations, respond to the audit queries and provide any supporting documents required by lawmakers. If the figures in question are the result of accounting classifications, timing differences or reconciliation issues, the company should explain them clearly. If corrections are necessary, they should be addressed transparently.


Nigeria's energy sector is too important to be clouded by avoidable disputes between two public institutions. Transparency thrives on openness, not silence. By appearing before the Senate and addressing the issues directly, NNPC Ltd. would not only fulfil its public responsibility but also reinforce confidence in its commitment to accountability, good governance and the reforms expected of a modern national energy company.


•Fola Adeoluwa Ph.D sent in this piece from Abuja vis foladeoluwa@gmail.com