- Summons Former GCEO Kyari, Ojulari, Others Over Controversial, Suspicious Spending
- Reveals N5.9bn Spent To Change Company’s Name From NNPC To NNPC Limited
The Nigerian Senate has intensified its probe into the Nigerian National Petroleum Company Limited (NNPCL) over alleged ₦210 trillion in unaccounted funds between 2017 and 2023.
TheMatrix Newspaper reports that the Office of the Auditor-General of the Federation (OAuGF) had, in audit reports from 2017 to 2023, alleged that NNPCL had been unable to account for the funds.
The Senate Committee On Public Accounts headed by Senator Ahmed Wadada had, however, clarified that the amount in question was neither stolen nor missing, but yet to be accounted for.
The unaccounted fund has raised dust in the Senate recently with the Upper Chamber threatening to issue an arrest warrant for current GCEO Engr Bayo Ojulari over the failure to honour the committee’s invitation on four different occasions.
Kyari led the national oil company from 2019 to 2025.
In the latest development, Wadada issued the summons on Thursday following a review of audit reports concerning the national oil company.
The committee also warned that it could issue warrants of arrest against the former officials if they failed to appear before it, on a date to be communicated soon.
Wadada disclosed the committee’s resolutions while briefing the media after its meeting.
According to him, the former management team is expected to appear before the committee alongside the current leadership of the NNPCL, led by the incumbent GCEO, Bayo Ojulari, as well as external auditors who worked with the company during the period under review.
The chairman also stated that the committee resolved that the NNPCL must account for the ₦210 trillion flagged in audit reports, comprising ₦103 trillion and ₦107 trillion that were allegedly not properly explained in the company’s financial records.
He noted that the committee had asked NNPCL 19 questions arising from the audit findings last year, but was not satisfied with the responses provided.
According to the senator, the company claimed that the ₦103 trillion represented cumulative spending by its joint venture partners through JV cash calls since 2017, a response the committee rejected.
The committee also raised concerns about ₦107 trillion recorded as “sundry receivables” in NNPCL’s audited financial statements as of December 2023, which the company said was owed by several banks and other entities.
“When the two figures are combined, NNPCL needs to properly account for ₦210 trillion,” it said.
“The Senate Public Accounts Committee, in the exercise of its constitutional mandate to ensure accountability, transparency, and value for money in the management of public accounts of the federation, embarked on a status inquiry into the income and expenditure of the Nigerian National Petroleum Company Limited,” he said.
The lawmakers also questioned the expenditure of ₦5 billion reportedly used to change the company’s name from the former Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company Limited.
Wadada also disclosed that the committee also observed an alleged duplication of subsidy deductions amounting to N3.8 trillion.
“Subsidy costs were deducted from crude oil proceeds in the books of NAPIMS and also from petroleum product proceeds in the books of NNPC,” he said.
“This amounts to an apparent duplication of subsidy deductions against revenue due to the federation.”
“NNPCL and NAPIMS admitted charging N5 trillion as direct production costs between 2017 and 2021,” he said.
“However, NNPC and NAPIMS do not produce crude oil. Charging such costs against crude oil revenue is unacceptable.”
Wadada said the committee also raised concerns over N5.9 billion spent as incorporation expenses during the transition from the NNPC to NNPC Limited.
“NNPC paid N2.9 billion as incorporation expenses from petroleum product proceeds,” he said.
“NAPIMS also charged N2.9 billion against crude oil revenue for the same purpose.
“This resulted in a combined total of N5.9 billion being spent simply to change the name from NNPC to NNPCL. This is unacceptable.”
“This to us in the committee is unacceptable, and satisfactory explanations must be given,” they added.
