Lawmakers Summon Mele Kyari as Senate Investigates N210tn Discrepancy, NNPC Rebrand Cost N5.9bn
Nigeria’s Senate has intensified scrutiny of the country’s national oil company after a legislative panel revealed that the rebranding of the Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company Limited consumed about N5.9 billion, while also summoning former Group Chief Executive Officer Mele Kyari and other former top officials over an alleged ₦210 trillion discrepancy in the company’s financial records.
The probe, led by the Senate Committee on Public Accounts chaired by Aliyu Wadada, is part of a broader investigation into the financial operations of Nigerian National Petroleum Company Limited covering the period between 2017 and 2023.
The committee’s action follows a review of audit reports and the company’s audited financial statements, which lawmakers say revealed inconsistencies and unexplained figures amounting to about ₦210 trillion.
According to the panel, the sum comprises two major components ₦103 trillion recorded as accrued expenses and ₦107 trillion listed as sundry receivables both of which lawmakers argue were not adequately explained in the financial documents presented by the oil company.
Senator Wadada disclosed that the committee had previously issued at least 19 queries to the oil company seeking clarification on several financial entries within the reports.
However, the explanations provided by the company were considered unsatisfactory, prompting the panel to escalate the matter and summon the former management team to appear before lawmakers. The Senate also directed that the current management of the company, along with external auditors responsible for preparing the financial statements during the period under review, appear before the committee to provide additional clarification.
Among the issues raising concern is the reported expenditure of about ₦5.9 billion for the rebranding exercise that transformed the former Nigerian National Petroleum Corporation into the Nigerian National Petroleum Company Limited as part of reforms under the Petroleum Industry Act. Lawmakers questioned the scale of spending associated with the name change and branding process, noting that a detailed explanation would be required from the former management.
In addition to the rebranding cost, the committee also raised questions over the classification of certain expenses and revenue entries in the company’s books.
Lawmakers noted that the ₦103 trillion recorded as accrued expenses reportedly covered items such as retention fees, legal fees and audit costs, but specific figures for these categories were not clearly stated in the financial statements. The panel also rejected claims that the figure largely represented cumulative spending by joint venture partners through cash calls since 2017, insisting that the explanation did not sufficiently justify the entries.
The Senate further directed that the company account for all production costs charged against crude oil revenue within the period under investigation, arguing that the corporation and its subsidiaries do not directly produce crude oil and therefore must clarify the basis of such charges.
Lawmakers warned that failure by the former officials to appear before the committee could result in the issuance of a warrant of arrest to compel their attendance.
As part of its resolutions, the committee also recommended that the Office of the Auditor-General for the Federation conduct a forensic audit of the oil company’s financial statements covering 2017 to 2023.
The move, according to the panel, is intended to strengthen transparency, ensure accountability in the management of public resources, and restore confidence in the financial reporting practices of Nigeria’s most strategic state-owned enterprise.
The probe underscores renewed legislative oversight of the country’s oil sector, which remains the backbone of government revenue and foreign exchange earnings. With the Senate demanding detailed explanations for the disputed figures and expenditures, the outcome of the investigation could have significant implications for financial governance and transparency within Nigeria’s energy industry.
Comments