The Senate Committee on Public Accounts has summoned a former Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, and his management team over alleged N210 trillion discrepancies.
The Chairperson of the committee, Ahmed Wadada, announced the summons at a news conference in Abuja on Thursday.
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Mr Wadada said that the development followed the unsatisfactory and unacceptable response of NNPCL to the audited financial statements of the company between 2017 and 2023.
“It is well known to the general public that this committee investigated the audited financial statement of NNPCL from 2017 to 2023.
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“The investigation lingered, not because the committee abandoned it but because we wanted to do a very thorough job so that the outcome will not be ambiguous and will send the right signal to the public,” he said.
The senator said that the inquiry began in May 2025 after concerns were raised on review of reports of Office of the Auditor-General for the Federation for the years ending 2019 and 2020.
“The committee subsequently reviewed the audited financial statements of NNPCL prepared by external auditors.
“The commiitee also examined financial records of the former National Petroleum Investment Management Services (NAPIMS), now known as NNPCL Upstream Investment Limited, for the same period,” he said.
Mr Wadada said that the committee raised 19 questions to the management of NNPCL seeking clarifications on the inconsistencies observed in the financial records.
He, however, said that the responses provided by the company were not satisfactory.
“One of the major issues raised by the committee was an accrued expenses figure of N103 trillion recorded in the company’s 2022 audited financial statements,” he stated.
Mr Wadada said that the expenses comprised retention fees, legal fees and audit fees, yet no specific figures were assigned to the items in the accounts.
He explained that NNPCL later stated that the amount represented cumulative spending by joint venture partners under the joint venture cash call arrangement.
“The committee rejected the explanation, noting that the cash call regime had been abolished in 2016 and took effect from January 2017.
“The committee also queried N107 trillion recorded as sundry receivables as of December 2023.
“NNPCL claimed that part of the amount was owed by some defunct banks and other entities, but lawmakers said the company failed to provide a detailed breakdown identifying the institutions responsible for the debts,” he said.
Mr Wadada said that the committee observed duplication of subsidy deductions amounting to N3.8 trillion, which, it said, was deducted from crude oil proceeds in the accounts of NAPIMS and also from petroleum product proceeds in the books of NNPC.
He also raised concerns over the N5 trillion charged as direct production costs between 2017 and 2021, saying that NNPC and NAPIMS do not directly produce crude oil.
“Another issue highlighted was the N5.9 billion spent on incorporation expenses during the transition from NNPC to NNPCL, which the committee described as excessive.
“Following these findings, the committee resolved that NNPCL must account for the combined N210 trillion arising from the unexplained accrued expenses and sundry receivables.
“It also directed the company to refund all production costs charged against crude oil revenue within the period under review.
“The committee further summoned the immediate past management of NNPC and NAPIMS, including Kyari, former Chief Financial Officer, Umar Ajiya and former Group General Manager of NAPIMS, Bala Wunti.
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“They are to appear before the panel alongside the current management of NNPCL and the external auditors who prepared the financial statements,” he said.
According to him, the officials are expected to provide detailed explanations on how the alleged infractions occurred.
Mr Wadada said that the committee had also recommended that the Office of the Auditor-General for the Federation conducts a forensic audit of NNPCL financial statements from 2017 to 2023, in line with Section 85 of the 1999 Constitution (as amended).
He said that the Senate would invoke its constitutional powers if the summoned officials failed to appear before the committee.
“Whoever this committee invites and refuses to come without satisfactory reasons, the needful will be done.
“We are empowered by the constitution and our rules of engagement here in the Senate,” he said.
The senator said that the committee remained committed to promoting transparency and accountability in the management of public fund, expressing support for the economic reform agenda of President Bola Tinubu.
(NAN)
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