The Senate has directed the Nigerian National Petroleum Company Limited (NNPCL) to refund ₦210 trillion to the Federation Account after rejecting the company’s explanations regarding missing funds.
The directive followed weeks of investigation by the Senate Committee on Public Accounts, chaired by Senator Aliyu Wadada, which scrutinised NNPCL’s financial statements covering 2017 to 2023.
The resolution came after the Group Chief Executive Officer of NNPCL, Bayo Ojulari, failed to appear before lawmakers during Tuesday’s resumed hearing at the National Assembly.
According to the committee, NNPCL’s audited accounts revealed ₦103 trillion in accrued expenses and ₦107 trillion in receivables figures the lawmakers described as “questionable and unsupported by evidence.”
Senator Wadada said the committee examined all 19 queries previously sent to NNPCL for clarification but found the responses “contradictory and unsatisfactory.”
“NNPC claimed ₦103 trillion as accrued expenses and ₦107 trillion as receivables amounting to ₦210 trillion. On question eight, NNPC’s explanation on the ₦107 trillion receivables, equivalent to about $117 billion, contradicts available facts and evidence provided by NNPC itself. The committee is duty-bound to reject this,” he stated.
Wadada also questioned the company’s claim of paying ₦103 trillion in Cash Calls to Joint Venture partners in 2023, despite its total crude oil revenue between 2017 and 2022 being only ₦24 trillion.
“Cash Call arrangements were abolished in 2016 under the Muhammadu Buhari administration. How can NNPC claim to have paid ₦103 trillion in one year when it only generated ₦24 trillion in revenue over five years? Where did NNPC get that money?” he queried.
Describing the company’s explanations as unacceptable, the committee directed that the ₦210 trillion be refunded to the national treasury.
It further warned that if NNPCL continues to ignore its summons, former top officials of the company and the National Petroleum Investment Management Services (NAPIMS) would be compelled to appear before the committee.
“If the present management of NNPCL is finding it difficult to provide acceptable answers, it is better they say so. The committee will not hesitate to subpoena former officials of NNPCL and NAPIMS,” Wadada cautioned.
The Senate emphasised that transparency and accountability must be upheld in the management of Nigeria’s oil revenues.
