Kyari Denies N210trn Loss Under His Watch at NNPCL

Former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has denied allegations that N210 trillion went missing from the company’s accounts during his tenure.

He told the Senate Committee on Public Accounts on Tuesday that the disputed figure resulted from accounting and bookkeeping entries, insisting that no money was lost under his leadership.

Kyari appeared before the committee at the National Assembly to respond to queries raised in audit reports on the company’s financial records and operations.

He also defended the N2.99bn spent on the incorporation of NNPCL, explaining that the payment covered statutory services provided by relevant government agencies on behalf of the Federation.

Addressing the N210 trillion controversy, the former GCEO faulted the interpretation of the company’s financial statements, arguing that the figures did not represent missing funds.

He also expressed reservations about some submissions made by former Chief Financial Officers who had appeared before the committee to explain the disputed accounts.

“The issue of N210 trillion that is misconstrued in the reports to have been lost, I confirm this moment that nothing is lost,” Kyari said.

He maintained that the alleged loss could not have occurred under his leadership, describing the discrepancies as bookkeeping issues rather than financial irregularities.

“It’s simply not possible under my care and under my leadership for that to happen. But it did not happen, and there are actually entry issues, which I know have been clarified.

“They are all issues of bookkeeping that have nothing to do with any losses,” he said.

On the controversy surrounding NNPCL’s incorporation, Kyari explained that the Petroleum Industry Act (PIA), which provided the framework for the transition from the Nigerian National Petroleum Corporation (NNPC) to a limited liability company, placed the responsibility for incorporation on the Federation.

He said the N2.99bn payment went to government institutions responsible for the statutory processes and was made by NNPCL on behalf of the Federation.

According to him, the company subsequently charged the amount to Federation revenue.

“It is actually a Federation role because the PIA, which this National Assembly passed, has said that the owners of the company should incorporate the company,” he said.

Kyari dismissed reports suggesting that the company spent billions of dollars on its registration, insisting that the N2.99bn covered statutory payments to government agencies.

“It is about N2.99bn. It’s actually a payment to statutory institutions of government that have that role to do,” he said.

He further argued that the National Assembly had already provided for the company’s name in the PIA, making payment for naming unnecessary.

“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,” he said.

He apologised if the auditors had not properly captured the transactions, describing the controversy as a matter of accounting description.

Defending his record in office, Kyari said he introduced a transparency and accountability framework after assuming leadership of NNPCL in 2019.

He said the initiative led to the publication of the company’s financial statements for the first time in its 43-year history, exposing its operations to public scrutiny.

The former GCEO attributed the company’s improved financial performance to reforms and cost-saving measures introduced during his tenure.

He claimed that NNPCL recorded a loss of $803bn in 2018, before he assumed office, but subsequently returned to profitability.

“This company fostered $803 billion loss in 2018. And, of course, I took over in 2019, and we did everything possible until it became a positive company and making sustained profits as a company in these 44 years that it did not do,” he said.

Kyari added that public scrutiny of the company’s financial statements helped management identify areas requiring improvement.

He also said his administration implemented Federal Government and National Assembly policies in the petroleum sector, including the transition towards a market-based petroleum products regime, while supporting investments in the oil and gas industry.

The former GCEO apologised for failing to attend previous committee sittings, attributing his absence to medical and family-related circumstances.

“I sincerely regret that I was unable to be with you during those hearings. It was unavoidable. I was medically indisposed, including some of the family issues associated with the medical situation,” he said.

Responding, Chairman of the committee, Senator Ibrahim Dankwambo, said the investigation remained inconclusive, adding that members would examine Kyari’s submissions alongside responses from other former NNPCL executives.

He said the committee would circulate the documents to members for further scrutiny before deciding whether to invite the former executives for additional explanations.

“We will circulate the reports to members for study. And if there are further interrogations on these reports or submissions, then we will have cause to invite any one of them or collectively all of them to come and respond to these issues,” Dankwambo said.

The chairman also disclosed that the committee would invite the Office of the Auditor-General of the Federation to provide clarification on issues raised in the audit reports.

He said members would examine the disputed figures and reconcile the accounting positions before reaching a conclusion.

“We will look at the figures. We will interrogate the figures. It is not over. We will sit together. All members will be circulated with the copies of the responses. I will take the investigation going forward,” he said.

Dankwambo explained that the N210 trillion controversy involved two items on NNPCL’s balance sheet which produced the disputed figure when viewed from different accounting perspectives.

The committee subsequently voted to allow Kyari to leave after his presentation, pending further examination of his responses.

However, the chairman stressed that the decision did not amount to clearing the former GCEO or concluding the investigation.

He said the committee would determine whether further explanations or appearances would be necessary after studying the documents.