The Senate Committee on Public Accounts has summoned former top executives of the Nigerian National Petroleum Company Limited over an alleged N210 trillion that the panel says was not properly accounted for in the company’s financial records between 2017 and 2023.
Those invited include the immediate past Group Chief Executive Officer of NNPCL, Mele Kyari; the former Chief Financial Officer, Umar Ajia Isa; and the former Group General Manager of the National Petroleum Investment Management Services, Dr. Bala Wunti.
The committee, chaired by Senator Aliyu Wadada, issued the summons on Thursday after examining audit queries linked to the financial activities of the national oil firm during the period under review.
Wadada warned that the committee could issue arrest warrants for the former officials if they fail to appear when invited. He said they are expected to attend the hearing alongside the current NNPCL leadership headed by the Group Chief Executive Officer, Engr. Bayo Ojulari, as well as the external auditors who handled the company’s accounts within the period in question.
Addressing journalists after the committee’s deliberations, the lawmaker said the panel had asked the company to explain the combined sum of N210 trillion flagged in audit reports. The amount, he noted, consists of N103 trillion and another N107 trillion recorded in the company’s financial statements.
According to him, the committee expects the company to provide a clear explanation for the two figures.
The panel also directed the company to remit to the national treasury all production costs previously charged against crude oil revenue during the period under review. Wadada argued that NNPC and its subsidiaries, including NAPIMS, are not direct producers of crude oil.
He explained that the committee arrived at its decision after the oil company failed to adequately respond to 19 audit queries raised against it.
During earlier engagements with the panel, the company reportedly explained that the N103 trillion reflected cumulative expenses incurred by joint venture partners through JV cash call arrangements between 2017 and 2023. However, the committee said the explanation was unsatisfactory.
In addition, the lawmakers questioned another N107 trillion listed in the company’s audited financial statements as subsidy receivables and other debts as of December 2023. The firm had indicated that the funds were owed by various financial institutions and other entities.
Wadada maintained that the figures, when combined, require a detailed explanation from the company.
The committee also raised concerns about the reported expenditure of N5 billion for the rebranding of the organisation from the Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company Limited.
According to the chairman, the committee considers the amount excessive and expects the company to justify the spending.
He further directed the Auditor-General for the Federation to conduct a comprehensive forensic review of the company’s accounts covering the period under scrutiny, in accordance with Section 85 of the 1999 Constitution as amended.
Despite the issues raised, the committee expressed support for the administration of President Bola Ahmed Tinubu, stating that the government remains committed to strengthening transparency and accountability in the management of public resources.
