The Senate Committee on Public Accounts has raised concerns over the N5.9 billion reportedly spent on the rebranding of the Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company Limited (NNPCL), while also questioning financial discrepancies amounting to about N210 trillion.
Chairman of the committee, Aliyu Wadada Ahmed, made the remarks during a public hearing where lawmakers scrutinised 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 reviewed by the committee indicated that the NNPC spent about N2.9 billion on incorporation expenses sourced from petroleum product proceeds, while the National Petroleum Investment Management Services (NAPIMS) also charged N2.9 billion against crude oil revenue for the same purpose.
According to the lawmaker, the duplication resulted in a combined total of about N5.9 billion being spent on the incorporation process.
“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,” Wadada said.
The committee also raised concerns over financial figures amounting to about N210 trillion, comprising N103 trillion and N107 trillion, which it said were not properly explained in the company’s accounts.
“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,” he added.
The committee subsequently summoned 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.
Wadada said the current management of NNPCL must also appear with the external auditors responsible for the company’s accounts during the period under review to provide explanations on the disputed figures.
The Senate committee noted that the hearing forms part of its ongoing efforts to ensure accountability and transparency in the management of public funds in Nigeria’s oil sector.
