The Senate Committee on Public Accounts (PAC) has summoned former Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Mr Mele Kyari, the Chief Financial Officer, Mr Umar Ajia Isa, and Dr Bala Wunti over N210 trillion in unaccounted expenditure from 2017 to 2023.
The committee threatened arrest warrants if they fail to appear on a date to be announced, as it is also questioning how the NNPCL spent N5 billion on rebranding from its former name, NNPC, to NNPCL.
These resolutions came from the committee’s meeting, which was chaired by Senator Aliyu Wadada.
While speaking with reporters at the National Assembly, he said the current GCEO, Mr Bayo Ojulari, should lead the former officials summoned by the committee on the appearance date.
Wadada said, “NNPCL should refund the sum of N210 trillion, being the combined sum of N103 trillion and N107 trillion, which was not properly accounted for as contained in the audit reports. NNPCL should and must account for the two figures.”
He continued, “The second resolution of the committee is that the NNPCL should refund to the treasury all production costs charged against crude oil revenue for the period under review since the NNPC and its subsidiaries, NAPIMS and co, do not directly produce crude oil.
“Three, the immediate-past management of NNPCL and NAPIMS, i.e., Mele Kyari as the then GCEO, Umar Ajia Isa as the then CFO, and Bala Wunti as the then GGM, NAPIMS, should and must appear before the committee and be led by the present management with the entire body of the external auditors that served within the period under review.
“Four, the Auditor-General for the Federation should carry out a forensic audit review of the audited financial statements of NNPCL for the period under review in line with Section 85 of the Constitution of the Federal Republic of Nigeria (1999 as amended).”
The committee also flagged the N5 billion rebranding cost as unacceptable.
Wadada noted, “This, to us in the committee, is unacceptable, and satisfactory explanations must be given. NNPCL’s responses to 19 audit queries fell short.
“NNPCL, as a result of the questions that we asked, responded that the N103 trillion represented cumulative amounts expended by NNPCL Joint Venture Partners from JV Cash Calls 2017. For that, this response is unacceptable, and the figure of N103 trillion is still lingering and hanging on NNPC.
“The subsidy receivables, according to the audited financial statement of NNPCL, stood at N107 trillion.
“As at December 2023, NNPCL recorded N107 trillion as sundry receivables, which it claims part of was owed by different banks and other entities. When put together, NNPCL needs to properly account for N210 trillion.”
The committee voiced support for President Bola Ahmed Tinubu’s administration in promoting transparency and accountability in public funds.
There has been a back-and-forth between the committee and the NNPCL over the controversial N210 trillion.