Mele Kyari, former group managing director of the Nigerian
National Petroleum Company (NNPC) Limited, has denied allegations that N210
trillion was unaccounted for in the company’s financial records between 2017
and 2023.
Kyari said no money was lost under his leadership, adding
that the disputed figures arose from accounting entries and bookkeeping issues
rather than financial infractions.
He spoke on Tuesday when he appeared before the senate
committee on public accounts, chaired by Ibrahim Dankwambo, to respond to
queries raised by the office of the auditor-general of the federation over
NNPC’s audited financial statements.
The former NNPC chief, who led the company from 2019 to
2025, said the allegations did not reflect any loss of public funds under his
watch.
“I wish to confirm that nothing was lost. It is simply not
possible that such an amount could have been lost under my care and
leadership,” he said.
“The matter relates to accounting entries, which have
nothing to do with any financial loss. They are bookkeeping issues, and I
believe the appropriate explanations have been provided in my report.”
The disputed N210 trillion comprises N103 trillion recorded
as accrued expenses and N107 trillion listed as sundry receivables in the
company’s financial statements covering 2017 to 2023.
Kyari also dismissed allegations that N5 billion was spent
on changing the company’s name from NNPC to NNPCL, insisting that no such
expenditure was incurred under his watch.
He equally addressed queries concerning the registration and
incorporation of NNPC Limited, explaining that the company had made payments on
behalf of the federation and subsequently charged the amounts to government
revenue.
“At the time of incorporation, the company was not owned by
the federation in the same manner. The federation was therefore responsible for
the payment relating to the incorporation of NNPC,” he said.
“However, NNPC made the payment on behalf of the federation
and subsequently charged it to the federation’s revenue, which was reflected in
what we referred to as the former NAPIMS account of NNPC.
“This was simply an accounting entry, involving
approximately N2.99 billion. It was a payment made to government institutions
responsible for providing the relevant services.
“I have also seen comments suggesting that N5 billion was
paid for the naming of the company. That is not correct.”
Kyari told the committee that the national oil company was
transformed from a loss-making entity into a profitable organisation during his
tenure.
He said the NNPC recorded a loss of about $803 billion in
2018, before he assumed office as group managing director in 2019, adding that
the company subsequently recorded sustained profits for the first time in its
44-year history.
“Mr Chairman, you may be aware from the financial records
that the company recorded a loss of about $803 billion in 2018,” he said.
“I took over in 2019, and we did everything possible to
transform the company into a profitable organisation, which made it for the
first time in its 44 years of existence, recording sustained profits.”
Dankwambo said the panel would examine Kyari’s submissions
alongside the relevant figures before deciding whether further clarification
would be required.
He said the audit queries under consideration covered 23
issues, but only one or two related directly to Kyari’s tenure.
“We shall interrogate the figures submitted by the former
GMD to know whether to invite him again or not. For now, he has responded to
the two issues relating to his leadership of NNPC during the period under
review,” Dankwambo said.
The chairman also said the committee accepted Kyari’s
apology for missing previous sittings, adding that his submissions would be
circulated among members for examination.
Kyari was discharged by the committee pending the conclusion
of its investigation.
The senate committee is probing contradictions in NNPC’s
audited accounts — specifically N103 trillion in accrued expenses and N107
trillion in receivables.
In June, the committee ordered the arrest of Kyari over his
repeated failure to honour invitations in the ongoing probe of the company’s
finances.
Former NNPC officials have maintained that the N210 trillion
figure does not represent missing funds but reflects accounting entries
requiring clarification.
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