CHUKWU DAVID reports that the Senate Committee on Public Accounts has summoned the management teams of the present and past leadership of the Nigerian National Petroleum Company Ltd (NNPCL) over uncovered financial irregularities in the establishment between 2017 and 2023

The Nigerian National Petroleum Company Limited (NNPCL) is facing a massive financial scandal with the Senate Committee on Public Accounts uncovering N210 trillion in financial irregularities within the oil corporation between 2017 and 2023. Following this discovery since June 2025, the committee led by Senator Ahmed Wadada, expressed outrage and frustration over the inconsistencies in the financial records of the nation’s largest oil firm, describing the situation as “unacceptable” and “mindboggling.”

The investigation carried out by the apex legislative chamber was initiated due to audit queries raised by the Office of the Auditor-General of the Federation, which highlighted financial management lapses in the audited account of NNPCL. For instance, the NNPCL claimed N103 trillion as accrued expenses and N107 trillion as receivables, totaling N210 trillion, but failed to provide satisfactory explanations or clarifications when requested to provide such information.

Consequently, the Senate directed the NNPCL to refund the sum of N210 trillion to the national treasury, being the combined sum of N103 trillion and N107 trillion, which were not properly accounted for as contained in the audit reports of the Auditor General of the Federation.

The committee also summoned the immediate past Group Chief Executive Officer (GCEO) of the NNPCL, Mele Kyari; the Chief Financial Officer, Umar Ajia and Dr. Bala Wunti, to make clarifications on the N210 trillion expended by the company between 2017 and 2023. The committee threatened to issue warrant of arrest against the summoned past management team of NNPCL if they fail to appear before it on a date to be communicated to them.

Senator Wadada, who made the disclosure during a press briefing at the National Assembly Complex, said the committee’s investigation was necessitated by the Auditor General’s annual reports for 2019 and 2020, which highlighted financial management lapses in NNPCL. Briefing journalists on the resolutions of the committee, Wadaba stated that the summoned past management team of NNPCL, should be led to appear before the senate panel by the incumbent GCEO, Engr Bayo Ojulari. He further noted that the committee carried out the investigation in its commitment to ensure accountability, transparency, and value for money in the management of public accounts of the federation.

According to him, the committee observed that NNPCL’s accrued expenses figure of N103 trillion was not properly explained, and the figure is still lingering and hanging on NNPCL. The committee also noted that NNPCL’s sundry receivables stood at N107 trillion, but the company was unable to provide a clear breakdown identifying the banks or entities responsible for the amounts.

According to the committee, it was observed that there was duplication of subsidy deductions against the revenue due to the federation, amounting to N3.8 trillion while noting that NNPCL and NAPIMS admitted charging N5 trillion as direct production costs between 2017 and 2021, despite not producing crude oil. The committee also noted that NNPCL paid N2.9 billion for incorporation expenses, while NAPIMS charged N2.9 billion for the same purpose, resulting in a combined total of N5.9 billion.

The committee, therefore, resolved that NNPCL should refund to the Treasury all production costs charged against crude oil revenue for the period under review. It also directed the Auditor General for the Federation to carry out a forensic audit review of the audited financial statements of NNPCL for the period under review.

Senator Wadada emphasized that the investigation was thorough and aimed at sending a clear message to the public, while reaffirming the Senate’s legislative support to President Bola Tinubu in his quest for a financially robust economy through the Renewed Hope Governance Agenda.

He, however, noted with displeasure that despite being invited, the Group Chief Executive Officer of NNPCL did not appear before the committee when the investigation was being carried out, but instead, he chose to send a letter detailing how the money was allegedly spent. His words: “The NNPC claimed N103 trillion as accrued expenses and N107 trillion as receivables, amounting to N210 trillion.

On question eight, NNPC’s explanation on the N107 trillion receivables – equivalent to about $117 billion – contradicts available facts and evidence provided by NNPC itself. The committee is duty-bound to reject this.

“Cash call arrangements were abolished in 2016 under the Muhammadu Buhari administration. How can NNPC claim to have paid N103 trillion in one year, when it only generated N24 trillion in revenue over five years? Where did NNPC get that money? “As far as this committee is concerned, that figure is unjustifiable and unacceptable. The N103 trillion must be returned to the Treasury.

This will be concluded when NNPC appears before us.” Wadada rejected NNPCL’s explanation for the N107 trillion receivables, which the company partly attributed to funds held in defunct banks. He argued that no specific banks or amounts were identified, describing the submission as lacking transparency. “If the present management of NNPC is finding it difficult to provide acceptable answers, it is better that they say so.

The committee will not hesitate to subpoena former officials of NNPC and NAPIMS. NAPIMS, by law, is a department under NNPCL and cannot maintain an independent account. Yet, NAPIMS has been operating as if it were a separate entity,” he stressed. While some analysts argued that the alleged misappropriation was perpetrated by the management of the NNPCL under President Buhari, others are of the view that the discovery by the Senate has some economic implications.

Among the implications are increased national debt, which will aggravate debt service obligations, economic instability that could lead to inflation, especially if the government is pushed to print more money to cover the debt service shortfall and erosion of investor confidence. Those who hold this view said the scandal may discourage investors, both foreign and local from investing in the country, a development that could undermine the country’s economic growth and stability.