The presidential candidate of the Labour Party in the 2023 presidential election, Mr. Peter Obi has once again showed gross misunderstanding of issues of public importance as he desperately tries to position himself as the main opposition voice against the federal government.
Mr. Obi, in his latest gaffe criticised the NNPC audited financial report covering 2017 to 2023 and erroneously stated that the Senate uncovered ₦210 trillion in financial irregularities contained in the report.
In a post on his X handle, Mr. Peter Obi said:
“It is with the utmost sadness that I once again reaffirm what I have consistently said: Nigeria has become a crime scene.
How else does one explain the recent revelation by the Senate, which uncovered the audited accounts of the NNPC from 2017 to 2023? The Senate uncovered ₦210 trillion in financial irregularities, ₦103 trillion in so-called “accrued expenses”, and another ₦107 trillion in unaccounted “receivables.” No documentation. No accountability. No consequences.”
The former Anambra State Governor went on to describe what he thought was an earth shattering revelation as not just “another scandal”, but “a clear and damning confirmation of a nation held hostage by monumental corruption.”
Mr. Obi even summed up the federal government budget figures between 2017 to 2023 (same period covered by the NNPC audited financial report) and said that the ₦88.010 trillion, being the total national budget within the said period was not up to 50% of the financial discrepancies and irregularities he alleged.
Mr. Peter Obi obviously did not wait to understand what exactly were the issues being raised by the Senate Committee Chairman on Public Accounts, Sen. Aliyu Wadada before erroneously assuming that N210 trillion, being the sum of expenditure and revenue, was missing or unaccounted for by the NNPC.
Sen. Aliyu Wadada, as part of his remarks had said: “Now, on these just two items, accrued expenses and then receivables, we are talking over N210tn.”
Apparently, Mr. Peter Obi saw this part and concluded that there was N210 trillion somewhere and that some financial irregularities had taken place involving this sum. He failed to understand that you do not sum up expenditures and revenues. They are two parallel lines.
How the controversy started
During a committee hearing, the Chairman Senate Committee on Public Accounts, Sen. Aliyu Wadada pointed out to the NNPC team led by the NNPCL’s Chief Financial Officer, Mr Dapo Segun that in the audit report of NNPC there were no enough documentary details to back some expenditures captured under the accrued expenses section of the audit report. The total accrued expenses for the period under review was N103 trillion.
Specifically, Sen. Aliyu Wadada mentioned that the figure for retention fees (5% of contract sums) under accrued expenses was over N600 billion, however there were no reference or mention of the contracts that led to this retention fee. The panel also raised similar concerns with accrued legal fees, saying that details of legal engagements that led to the fee were not attached to the legal feea.
The committee also raised concerns over discrepancies between the accrued receivables contained in the audit report which totals N107 trillion and the ones contained in a fresh document that it said NNPCL submitted shortly before the hearing commenced.
The NNPCL CFO explained that these discrepancies were not unusual because as at the time the audit report before the committee was made, there were still some pending reconciliation of transactions between the various parties, and stated that the new document before the committee reflects the latest reconciled figures.
The Senator Wadada-led committee issued 11 questions that needed clarifications to the NNPCL team and gave them one week to provide the answers.