The Senate has summoned the immediate past Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, over an alleged N210 trillion expenditure by the national oil company between 2017 and 2023 that lawmakers say has not been fully explained.
Also invited to appear before the Senate committee investigating the matter are the former Chief Financial Officer of the company, Umar Isa, and the former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Bala Wunti.
The committee warned that it may issue warrants of arrest against the former officials if they fail to honour the invitation on a date yet to be announced.
Speaking with journalists after the meeting, the chairman of the committee, Aliyu Wadada, said the former management team is expected to appear before the panel alongside the current NNPCL leadership led by the company’s Group CEO, Bayo Ojulari.
According to Wadada, the company must explain discrepancies uncovered in audit reports covering the period under review.
He said the panel resolved that NNPCL must account for a combined N210 trillion, consisting of N103 trillion and N107 trillion, which lawmakers believe were not properly captured in the company’s financial records.
“The NNPCL should refund the sum of N210 trillion being the combined amount that was not properly accounted for in the audit reports. The company must provide a clear explanation of these figures,” Wadada stated.
The committee also directed the company to remit to the national treasury all production costs charged against crude oil revenue during the period, noting that NNPCL and its subsidiaries, including NAPIMS, do not directly produce crude oil.
In addition, the Senate asked the Auditor-General for the Federation to conduct a forensic audit of NNPCL’s financial statements for the period, in line with Section 85 of the 1999 Constitution (as amended).
Lawmakers further questioned the company’s reported N5 billion expenditure on changing its name from the former Nigerian National Petroleum Corporation (NNPC) to the Nigerian National Petroleum Company Limited, describing the amount as unacceptable and demanding proper justification.
Wadada explained that the committee’s decision followed the company’s inability to give satisfactory responses to 19 questions raised by lawmakers based on findings from the audit report.
According to him, NNPCL claimed that the N103 trillion represented cumulative spending by joint venture partners under cash call arrangements since 2017. However, the committee said the explanation was inadequate and that the figure remains unresolved.
He also noted that the company’s audited financial statements listed N107 trillion as subsidy-related receivables and other sundry debts allegedly owed by banks and other entities as of December 2023.
“When both figures are combined, NNPCL must properly account for the N210 trillion,” Wadada said.
Despite the concerns raised during the probe, the committee reaffirmed its support for the administration of President Bola Ahmed Tinubu, stressing that the Federal Government remains committed to transparency, accountability, and prudent management of public funds.
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