The Senate Committee on Public Accounts has criticised the Nigerian National Petroleum Company Limited (NNPC Ltd.) for failing to appear at a scheduled hearing to explain discrepancies in its financial statements for the period 2017–2023.
The absence of the company’s management — despite the date being chosen by NNPC itself — drew sharp condemnation from the committee.
“May I know if NNPC is here? Any member of the management present? Distinguished colleagues, it is rather unfortunate that none of the officials of NNPC is here — on a date they themselves chose,” said the Committee Chairman.
He emphasised that the committee would not allow public funds to go unaccounted for, particularly regarding the ₦210 trillion that NNPC claimed as accrued expenses and receivables.
NNPC’s
submission claimed ₦103 trillion in accrued expenses and ₦107 trillion in receivables from 2017 to 2023. The committee rejected the ₦103 trillion cash call payments to joint venture partners in 2023, citing legal and financial impossibilities.
“Cash call arrangements were abolished in 2016. 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? That figure is unjustifiable and must be returned to the Treasury.”
“NNPC claimed ₦107 trillion as receivables, part allegedly held in defunct banks. Yet, no banks or amounts were named. This is unacceptable. Combined with accrued expenses, NNPC must account for ₦210 trillion,” he said.
The committee also flagged illegal subsidy practices by NNPC and its subsidiary NAPIMS.
“Between 2017 and 2021, NAPIMS charged subsidy on crude oil, which is illegal. At the same time, NNPC charged subsidy on refined petroleum products such as kerosene, diesel, and fuel. These practices are unacceptable and unlawful, as clearly shown in the audited financial statements.”
“If the current management cannot provide satisfactory answers, the committee will subpoena former officials of NNPC and NAPIMS. NAPIMS cannot maintain independent accounts from NNPC, yet it has been acting as if it were separate. This will not stand,” he said.
The chairman warned that future absences by the NNPC Group Chief Executive Officer would no longer be tolerated:
“The GCEO must appear in person. Being out of the country will not be accepted as an excuse.”
Senator Jerry praised the committee’s courage and condemned NNPC’s disregard for public accountability.
“Some people behave as if NNPC is the country itself. Charging subsidy on both crude and refined products is not only illegal — it is monumental fraud. These are the funds our president is forced to borrow from foreign countries. The 1999 Constitution gives this committee power to act, even to arrest the GCEO if necessary.”
“We are not EFCC, ICPC, or the Police. We operate openly and constitutionally. Legislative oversight of agencies like NNPC is our duty. Appearing before EFCC or ICPC does not exempt anyone from scrutiny,” the chairman said.
He concluded with a call for national support:
“This administration, under President Asiwaju Bola Ahmed Tinubu, needs all hands on deck. Public funds must be judiciously used, and NNPC must make the necessary refunds to the government,” he said.
