Chairman of the committee, Senator Aliyu Wadada Ahmed, raised the issues during a public hearing where lawmakers reviewed the financial records of the national oil company
The Senate Committee on Public Accounts has questioned the N5.9 billion reportedly spent on the rebranding of the Nigerian National Petroleum Corporation (NNPC) to the Nigerian National Petroleum Company Limited (NNPCL), while also raising concerns over about N210 trillion in financial discrepancies.
Chairman of the committee, Senator Aliyu Wadada Ahmed, raised the issues during a public hearing where lawmakers reviewed the financial records of the national oil company.
Wadada described the amount spent on the transition from NNPC to NNPCL as excessive.
“In this day and age, who will comprehend such a figure being expended just to change the name of NNPC to NNPCL?” he queried.
Documents examined by the committee showed that NNPC reportedly spent about N2.9 billion on incorporation expenses sourced from petroleum product proceeds.
The National Petroleum Investment Management Services (NAPIMS) was also said to have charged N2.9 billion against crude oil revenue for the same purpose.
Wadada said the duplication resulted in a total of about N5.9 billion being spent on the incorporation.
“NNPC paid N2.9 billion for incorporation expenses from petroleum product proceeds, while NAPIMS also charged N2.9 billion against crude oil revenue for the same purpose.
“This resulted in a combined total of N5.9 billion being expended for incorporation by NNPCL,” he said.
The senator also expressed concern over financial figures totalling about N210 trillion, comprising N103 trillion and N107 trillion, which he said were not properly explained to the committee.
“The NNPC should refund the sum of N210 trillion, being the combined sum of N103 trillion and N107 trillion, which were not properly explained to the committee, as the aggregate sum cannot be netted in tandem with accounting principles,” Wadada stated.
The committee subsequently summoned the former Group Managing Director of NNPC, Mele Kyari, alongside former Chief Financial Officer, Umar Ajiya, and other officials, including a former Group General Manager of NAPIMS, to appear before it.
“Mele Kyari as the Group Managing Director, Umar Ajiya as the Chief Financial Officer, and other officials involved must appear before the committee,” Wadada said.
He added that the present management of NNPCL must also appear with the external auditors who handled the company’s accounts during the period under review to provide explanations on the disputed figures.
The committee said the hearing forms part of its ongoing effort to ensure accountability and transparency in the management of public funds in Nigeria’s oil sector.
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