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Senate Orders Mele Kyari To Explain ₦210 Trillion NNPCL Expenditure.
The Senate on Thursday summoned the former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, along with ex-Chief Financial Officer Umar Isa and former Group General Manager of National Petroleum Investment Management Services (NAPIMS), Bala Wunti, over an alleged ₦210 trillion expenditure by the national oil company between 2017 and 2023 that lawmakers say remains unaccounted for.....KINDLY READ THE FULL STORY HERE▶
The Senate committee overseeing the probe warned that a warrant of arrest could be issued if the former officials fail to appear when their scheduled date is communicated.
Lawmakers also questioned the NNPCL’s reported ₦5 billion expenditure on the rebranding exercise that changed the defunct Nigerian National Petroleum Corporation (NNPC) to the Nigerian National Petroleum Company Limited.
The decision to summon the former management team was taken during a committee meeting on Thursday, March 5. Committee Chairman Aliyu Wadada Ahmed, representing Nasarawa West, read the resolutions to journalists after the meeting, noting that the summoned officials must appear alongside the current NNPCL Group CEO, Bayo Ojulari.
NNPCL Must Account for ₦210 Trillion
Wadada explained that the oil company must provide detailed explanations regarding the funds highlighted in audit reports covering the period under review.
“NNPCL should refund the sum of ₦210 trillion, being the combined total of ₦103 trillion and ₦107 trillion, which were not properly accounted for as reflected in the audit reports. The company must account for these figures,” he said.
The committee also resolved that NNPCL must remit to the treasury all production costs charged against crude oil revenue within the same period.
“The second resolution is that NNPCL should refund all production costs charged against crude oil revenue for the period under review, as the NNPC and its subsidiaries, including NAPIMS, do not directly produce crude oil,” Wadada stated.
Additionally, the former management team of NNPCL and NAPIMS, along with the current management and external auditors who served during the years under investigation, were directed to appear before the committee.
“Thirdly, the immediate past management, including Mele Kyari as GCEO, Umar Isa as CFO, and Bala Wunti as GGM of NAPIMS, must appear before the committee, led by the current management and accompanied by all external auditors who served during the period under review,” he said.
Senate Orders Forensic Audit
The committee also recommended that the Office of the Auditor-General for the Federation conduct a forensic review of NNPCL’s audited financial statements for the period in question.
“Fourthly, the Auditor-General should carry out a forensic audit of NNPCL’s financial statements in line with Section 85 of the Constitution of the Federal Republic of Nigeria (1999 as amended),” Wadada added.
The resolutions came after NNPCL failed to provide satisfactory answers to 19 questions raised by lawmakers based on the audit report.
NNPCL had claimed that the ₦103 trillion figure represented cumulative expenditures by its joint venture partners through JV cash calls since 2017.
“NNPCL responded that the ₦103 trillion reflects amounts expended by its Joint Venture Partners from 2017 cash calls. This explanation is unacceptable, and the figure of ₦103 trillion remains unresolved,” Wadada said.
The senator also highlighted another ₦107 trillion recorded as subsidy-related receivables in the company’s audited financial statements.
“According to NNPCL’s audited statements, subsidy receivables stood at ₦107 trillion. As of December 2023, sundry receivables totaled ₦107 trillion, partly owed by various banks and entities. Combined with the ₦103 trillion, NNPCL must properly account for ₦210 trillion,” he explained.
Despite the probe, the committee reaffirmed its support for President Bola Ahmed Tinubu’s administration, noting that the government remains committed to transparency, accountability, and proper management of public funds and national resources.
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