Kyari says no money is missing from NNPCL, disputes audit findings

Challenges financial officers’ submissions as Senate vows deeper probe

Former Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has pushed back against the N210 trillion financial controversy surrounding the state-owned oil company, accusing auditors of misinterpreting accounting entries and wrongly presenting them as missing funds.
 
Appearing before the Senate Committee on Public Accounts yesterday, Kyari insisted that not a single kobo of the disputed N210 trillion was lost under his leadership.
 
Describing the figures as bookkeeping entries that had been misconstrued in the audit reports, the former oil company chief also questioned submissions made by some former NNPCL financial officers, insisting that the controversy required a proper understanding of the company’s accounting records.
 
“I confirm at this moment that nothing is lost,” Kyari declared. “It’s simply not possible under my care and under my leadership for that to happen. It did not happen, and there are actually entry issues, which I know have been clarified. They are all issues of bookkeeping that have nothing to do with any loss,” he told the lawmakers.
 
His appearance came amid scrutiny of NNPCL’s financial statements and audit findings that raised questions about transactions running into N210 trillion.
 
He also defended the controversial N2.99 billion expenditure on the incorporation of NNPCL, dismissing suggestions that the company made questionable payments to secure its registration or name.
 
According to him, the expenditure covered statutory services rendered by government institutions and was incurred by NNPCL on behalf of the Federation.
 
He explained that the Petroleum Industry Act (PIA), which provided the framework for transforming the former Nigerian National Petroleum Corporation into a limited liability company, placed the responsibility for incorporation on the company’s owners.
 
Kyari said NNPCL made the payment on behalf of the Federation and subsequently charged it to Federation revenue.
 
He also rejected suggestions that money was paid to the National Assembly for the company’s name, stressing that the name, NNPCL, was already provided for in the PIA.
 
“This company was named by the National Assembly, so you don’t need to pay any kobo to register it,” he said.
 
Beyond the disputed transactions, Kyari mounted a defence of his tenure, claiming that his administration introduced financial transparency and accountability measures that opened NNPCL’s books to public scrutiny for the first time in the company’s 43-year history. He said the reforms exposed operational weaknesses and improved the company’s financial performance.
 
Kyari further claimed that NNPCL recorded a loss of $803 billion in 2018, before he assumed office in 2019, but returned to profitability following reforms and cost-cutting measures implemented during his tenure.
 
The former GCEO apologised for missing previous appearances before the committee, attributing his absence to medical and family-related circumstances.
 
However, the Senate made it clear that Kyari’s explanations would not close the books on the N210 trillion controversy.
 
Committee Chairman, Sen. Ibrahim Dankwambo, said lawmakers would subject the submissions of Kyari and other former NNPCL executives to further scrutiny.
 
He disclosed that members would receive copies of the reports and responses for detailed examination.
 
The chairman explained that two items on NNPCL’s balance sheet, when examined from different accounting perspectives, produced the N210 trillion figure under investigation.
 
Although members voted to allow Kyari to leave after his presentation, Dankwambo stressed that the decision did not amount to exoneration or the termination of the investigation.