In a significant move aimed at addressing alarming financial discrepancies, the Senate Public Accounts Committee has summoned the former management of the Nigerian National Petroleum Company Limited (NNPCL), including ex-Group Chief Executive Officer Mele Kyari. The action follows revelations of alleged financial irregularities totalling approximately N210 trillion in the company’s audited financial statements from 2017 to 2023.
Investigation Overview
Chairman of the Senate Public Accounts Committee, Ahmed Aliyu Wadada, representing Nasarawa West Senatorial District, announced the summons during a press briefing at the National Assembly Complex. The committee’s investigation, which commenced in May 2025, was initiated after concerns arose during the review of reports from the Office of the Auditor-General for the Federation for the fiscal years ending 2019 and 2020.
Wadada emphasized the thoroughness of the investigation, stating, “It is well known to the general public that this committee investigated the audited financial statement of NNPCL from 2017 to 2023. 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.”
Key Findings
The committee conducted a meticulous review of NNPCL’s audited financial statements, as well as the financial records of the former National Petroleum Investment Management Services (NAPIMS), now known as NNPCL Upstream Investment Limited. In total, the committee posed 19 inquiries to NNPCL’s management, seeking clarity on several inconsistencies found in the financial records.
One of the most concerning issues raised involved an accrued expenses figure of N103 trillion recorded in the company’s 2022 audited financial statements. This amount was purportedly made up of retention fees, legal fees, and audit fees, yet lacked specific itemization within the accounts.
NNPCL later justified the figure as representing cumulative spending by joint venture partners under the Joint Venture cash call arrangement, a regime that was abolished in 2016 and ceased to be effective from January 2017. The committee rejected this explanation, citing it as insufficient.
Additionally, the committee scrutinised a recorded N107 trillion in sundry receivables as of December 2023. NNPCL claimed part of this amount was owed by several defunct banks and other entities; however, lawmakers noted the absence of a detailed breakdown identifying the responsible institutions.
Another critical issue was an alleged duplication of subsidy deductions amounting to N3.8 trillion, which the committee stated was deducted from both crude oil proceeds in NAPIMS accounts and from petroleum product proceeds in NNPC’s financial records.
Moreover, the committee expressed concern over N5 trillion charged as direct production costs between 2017 and 2021, questioning how NNPC and NAPIMS could incur such costs when they do not directly produce crude oil.
The investigation also highlighted a substantial N5.9 billion spent on incorporation expenses during the transition from NNPC to NNPCL, which the committee deemed excessive.
Actions and Recommendations
In light of these troubling findings, the Senate committee has mandated NNPCL to account for the combined N210 trillion associated with the unexplained accrued expenses and sundry receivables. Additionally, the company has been directed to refund all production costs charged against crude oil revenue during the review period.
The committee has summoned not only 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, but also the current management of NNPCL and the external auditors responsible for the financial statements. These officials are expected to provide detailed explanations regarding the alleged financial infractions.
Wadada further stated that the committee has recommended a forensic audit of NNPC’s financial statements from 2017 to 2023, as stipulated in Section 85 of the 1999 Constitution.
Consequences for Non-Compliance
Addressing queries from journalists, Wadada warned that the Senate would exercise its constitutional authority should the summoned officials fail 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 asserted.
The committee reaffirmed its dedication to promoting transparency and accountability in the management of Nigeria’s public resources. It expressed support for the economic reform agenda championed by President Bola Ahmed Tinubu, signalling a robust commitment to rectifying financial governance within the country’s vital oil sector.
Conclusion
The Senate’s call for accountability from the former management of NNPCL underlines a crucial step towards addressing the longstanding financial discrepancies plaguing Nigeria’s oil sector. With the committee’s commitment to thorough investigation and transparency, stakeholders remain hopeful that these measures will foster greater financial integrity and boost public confidence in the management of Nigeria’s natural resources. As the inquiry unfolds, the implications for NNPCL and the broader economic landscape will be closely monitored by both the public and financial analysts.
