The Senate, through its Committee on Public Accounts, has summoned former top executives of the Nigerian National Petroleum Company Limited (NNPCL) to address questions regarding ₦210 trillion in unaccounted funds.
The legislative inquiry, led by Committee Chairman Senator Ahmed Wadada, focuses on financial records spanning from 2017 to 2023. The summons follows a series of 19 audit queries that the committee deemed were met with “unsatisfactory” explanations from the national oil company.
The Senate has directed the current NNPCL Group Chief Executive Officer, Bayo Ojulari, to ensure the appearance of several former officials, including: Mele Kyari, Former Group Chief Executive Officer, Umar Ajiya Isa, Former Chief Financial Officer and Bala Wunti, Former Group General Manager of the National Petroleum Investment Management Services (NAPIMS).
The committee emphasized that these individuals must appear alongside current management and the external auditors who certified the company’s financial statements during the period in question. Lawmakers have also warned that a warrant of arrest may be issued if the invited parties fail to comply with the summons.
The ₦210 trillion figure is a combination of two primary financial concerns:
- ₦103 Trillion in Accrued Expenses: The NNPCL attributed this to Joint Venture (JV) cash calls. However, the committee rejected this justification, noting that the JV cash call system was officially abolished in late 2016.
- ₦107 Trillion in Sundry Receivables: These funds were listed as debts owed by various banks and entities as of late 2023, but the committee noted a lack of detailed breakdown identifying the specific debtors.
Beyond the ₦210 trillion, the Senate committee highlighted other irregularities:
- Lawmakers questioned the ₦5.9 billion expenditure for the company’s transition from a corporation (NNPC) to a limited liability company (NNPCL), labeling the cost as excessive.
- The committee has ordered a refund of production costs charged against crude oil revenue, arguing that NNPCL and its subsidiaries do not directly produce the crude.
- The Senate has recommended that the Auditor-General for the Federation conduct a comprehensive forensic audit of the company’s financial statements from 2017 to 2023 to ensure full transparency.
Senator Wadada reaffirmed the committee’s commitment to accountability, stating that the probe aligns with constitutional mandates to oversee the management of public funds and support national economic reforms.
