The former Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), Mele Kyari, has categorically dismissed allegations that N210 trillion is missing from the national oil firm’s coffers. Appearing before the Senate Public Accounts Committee on Tuesday, Kyari maintained that the figure, which has sparked significant public alarm, is merely an accounting entry rather than a manifestation of actual financial loss.
The investigative hearing, led by Senator Ibrahim Dankwambo, was convened to scrutinize the audited financial statements and operational records of the NNPC for the 2021, 2022, and 2023 fiscal years. Kyari’s attendance came after the committee threatened to exercise its constitutional powers to compel his presence following his failure to honor prior invitations. Accompanied by his legal representatives, the former oil boss formally submitted a written response to address the committee’s queries.
During the session, Kyari identified two primary areas of contention: the N210 trillion accounting entry and the administrative costs associated with the incorporation of the NNPC. Regarding the substantial sum mentioned in the financial records, Kyari emphasized that the amount was a consequence of bookkeeping practices rather than misappropriation or operational deficit. He insisted that under his stewardship, the corporation did not suffer any loss of funds.
On the matter of incorporation expenses, Kyari explained that the costs involved payments to the Corporate Affairs Commission (CAC), the Nigeria Revenue Service (NRS), and other government institutions. He clarified that while the Petroleum Industry Act (PIA) dictates that the company’s shareholders are responsible for such costs, the NNPC initially shouldered the burden on behalf of the federation before charging the expenses to the federation’s revenue. He pointed out that the ownership structure of the NNPC has since evolved, with the NRS confirming that the entity now fully belongs to the federation.
Before concluding his testimony, Kyari offered an apology to the committee for his previous absences. He explained that his inability to attend earlier hearings was due to unavoidable personal and family-related health challenges, which he hoped the committee would accept as a genuine excuse.
Source: NaijaProbe