Economy

Scholar Refutes ₦210 Trillion NNPCL Claim

Published

8 months ago

March 8, 2026

Q Tinny

Dr Kingsley Adegbite dismisses the NNPCL ₦210 trillion claim, citing Nigeria’s fiscal limits and joint venture accounting complexities

Accounting scholar and former oil industry executive, Dr Kingsley Ade Adegbite, has dismissed Senator Ahmed Wadada’s allegation of a ₦210 trillion discrepancy in the accounts of the Nigerian National Petroleum Company Limited (NNPCL), describing the claim as economically implausible and based on a misunderstanding of the company’s financial structure.

Also read: Edo, NNPC Plan 10,000bpd Condensate Refinery

Adegbite, a former Business Development Manager for Sub-Saharan Africa at BP, said in an opinion published on Friday that the figure cited “collapses under simple arithmetic and basic financial scrutiny.”

He noted that Nigeria’s entire federal budget between 2017 and 2020 ranged between ₦7 trillion and ₦10 trillion annually, rarely exceeding ₦20 trillion in recent years.

“To suggest that a single government company misplaced ₦210 trillion implies sums several times larger than Nigeria’s annual national budget for multiple years combined,” Adegbite said.

He explained that for such a claim to hold, NNPCL would have had to generate and lose funds exceeding the fiscal capacity of the Nigerian state itself.

The scholar also addressed misinterpretations of the national oil company’s structure, particularly regarding NNPC Upstream Investment Management Services Limited (NUIMS), formerly NAPIMS. NUIMS manages Nigeria’s upstream joint venture interests under multiple layers of corporate and regulatory oversight, including approvals from NNPC, joint venture partners, and regulatory bodies.

“There is simply no operational pathway through which NUIMS could independently disburse tens or hundreds of trillions of naira outside corporate control and partner scrutiny,” he said, cautioning against sensational interpretations of joint venture accounting, which often involve multi-year financing, legacy liabilities, and reconciliation of prior commitments.

Adegbite also addressed the reported ₦5 billion spent during the transition from NNPC to NNPCL, clarifying that the change involved structural reforms under the Petroleum Industry Act, corporate restructuring, asset and liability transfers, and a global rebranding rollout, including logo redesigns, signage, advertising campaigns, and digital transitions.

The expert expressed concern that exaggerated claims about the oil sector often dominate headlines before technical scrutiny, potentially eroding investor confidence and public trust.

He stressed that legislative oversight is essential but must be guided by evidence-based analysis.

Also read: NNPC Admits Inability to Run Refineries, Seeks Foreign Partners

“What initially appears as a monumental financial scandal quickly dissolves into a phantom figure that exists more comfortably in political rhetoric than in verifiable financial records,” Adegbite concluded.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

22 hours ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.