NNPC Audit Report: Former GMD tells lawmakers ₦210 trillion isn’t missing

“The issue of ₦210 trillion that is misconstrued in the reports as having been lost; I have confirmed at this moment that nothing is lost. It’s simply not possible under my care and under my leadership for that to happen, but it did not happen.”

Former Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, said the alleged ₦210 trillion discrepancy flagged in the Auditor-General’s report covering 2017 to 2023 misrepresents the facts.

He said this on Tuesday, when he appeared before the Senate Committee on Public Accounts to respond to allegations in the audit report.

“The issue of ₦210 trillion that is misconstrued in the reports to have been lost, I have confirmed at this moment that nothing is lost. It’s simply not possible under my care and under my leadership for that to happen, but it did not happen,” he said.

Mr Kyari argued that the controversy originated from accounting and bookkeeping failures rather than any financial losses. He said he had provided detailed explanations in a report submitted to the committee.

“There are actually three issues, which I know have been clarified. They are bookkeeping issues and have nothing to do with any losses. And I really, really confirm that nothing is lost. Those are just accounting entry issues, and I’m sure that description is correct. It’s also in my report how that description works,” he added.

The controversy surrounding the alleged ₦210 trillion discrepancy began in June 2025 after details of NNPC Ltd’s audited financial records attracted public attention.

At the time, the Senate committee gave the company a seven-day ultimatum to explain the discrepancies. However, NNPC Ltd, now led by Bayo Ojulari, failed to meet the deadline, citing its officials’ attendance at a retreat.

The company’s failure to respond to the Senate’s queries fuelled public concerns about transparency and accountability within the national oil company.

In November 2025, NNPC Ltd submitted a written explanation to the committee, stating that ₦103 trillion represented accrued expenses, while ₦107 trillion was recorded as receivables.

The committee, then chaired by Aliyu Wadada, the senator representing Nasarawa West, rejected the explanation and insisted that the company’s leadership appear in person to provide further clarification.

The matter remained unresolved until Ibrahim Dankwambo, the senator for Gombe Central, replaced Mr Wadada as committee chairman and resumed the investigation.

The committee later invited Mr Kyari to appear before the lawmakers and account for the discrepancies. In June, the committee threatened to issue an arrest warrant against him to compel his appearance after he failed to honour several invitations.

President Bola Tinubu removed Mr Kyari from office in April 2025 amid several corruption-related petitions against him.

Mr Kyari also addressed questions surrounding the payment of about ₦2.99 billion for the incorporation and registration of NNPC Limited, explaining that the expenditure covered payments to government institutions responsible for the relevant statutory processes.

The former NNPC chief executive said the payment was not for naming the company, contrary to some public interpretations of the financial records.

He explained that the Petroleum Industry Act (PIA), enacted by the National Assembly, provided for the incorporation of NNPC Limited as part of the national company’s restructuring.

According to the PA, the payment was made to the relevant government institutions and subsequently charged to the Federation’s revenue account.

“It’s actually paid to the former FIRS and the Corporate Affairs Commission as a matter of payment for registration. It’s just an entry about who should pay for it. The PIA, which is the National Assembly, states that company owners should incorporate the company.

“In this case, the owner of the company at that moment was not necessarily NNPC. The federation must pay for that role in the incorporation. NNPC, which was not owned by the federation at that moment, paid on behalf of the federation and then charged it to the federation’s revenue base.”

Mr Kyari also dismissed reports suggesting that NNPC Ltd paid about ₦5 billion merely to register or name the company, insisting that the name was already provided for in the PIA.

“I have some comments that, for naming the company, we paid ₦5 billion. Actually, this company was named by the National Assembly, so you don’t need to pay any kobo to register that company.

“The company was named by the National Assembly in appropriate sections of the PIA. So there is no such thing. I think it’s a description issue, and we apologise if that wasn’t properly captured by the auditors,” he said.

While defending his stewardship, Mr Kyari said he assumed responsibility for the state oil company in 2019 and immediately introduced a transparency and accountability framework to strengthen public confidence in its operations.

He said the decision to publish the company’s financial statements exposed its operations to sustained public scrutiny but ultimately improved institutional accountability and operational performance.

“When I took responsibility in 2019, the first thing I did was to institute a transparency and accountability framework. I said that public institutions and public leaders must account for what they are responsible for, and institutions must be accountable to their stakeholders, particularly their shareholders.

“In the case of NNPC, all Nigerians are shareholders of this company. And I understood this. We took the bold decision to publish the financial records of this company, which has never been done in its 43 years of existence.”

After his presentation, Mr Kyari submitted his report to the committee.

The committee chairman said the lawmakers would study the document and review his explanations before deciding on further action.