… flags ‘criminal’ N5.8bn NNPC rebranding cost
The Chairman of the Senate Committee on Public Accounts, Aliyu Wadada Ahmed, on Sunday declared that individuals may face jail terms if ongoing investigations into alleged financial discrepancies in the Nigerian National Petroleum Company Limited (NNPCL) establish wrongdoing.
Speaking during an appearance on ‘Politics Today’ on Channels Television, the lawmaker said the Senate would pursue the probe to its logical conclusion despite mounting controversy surrounding figures contained in the oil company’s audited financial statements.
The investigation centres on about N210 trillion recorded as liabilities and assets in NNPCL’s books between 2017 and 2023.
According to Wadada, the Senate committee has already raised serious questions over the figures and will not hesitate to ensure accountability if the allegations are substantiated on the NNPC’s unaccounted expenditure.
“If it means that people will go to jail, we must see this to the end without a break,” he said.
The senator also described as “criminal” the manner in which about N5.8 billion was allegedly spent on rebranding the national oil company from NNPC to NNPCL.
He explained that the committee discovered what it described as a double charge in the records.
“The way we arrived at the N5.8 billion is troubling. N2.9 billion was charged from petroleum product proceeds to execute the rebranding, and at the same time, NAPIMS also charged N2.9 billion for the same purpose,” he said.
“Putting the two figures together makes N5.8 billion just to add ‘Limited’ to NNPC and repaint the logo. How do we accept that?”
Wadada also said the committee was dissatisfied with the explanations so far provided regarding N103 trillion recorded as accrued expenses in the company’s audited financial statement.
According to him, the amount was merely listed as covering retention fees, legal fees and audit fees without specific figures attached to each category.
“The audited financial statement is the ultimate document showing the financial dealings of an organisation. Yet N103 trillion was simply listed as accrued expenses without a detailed breakdown,” he said.
He added that the current NNPCL management told the committee the money was used to settle joint venture obligations.
However, Wadada questioned the explanation, noting that cash call arrangements had been abolished in 2016 under former President Muhammadu Buhari.
The Senate Committee Chairman also raised concerns over N107 trillion recorded as receivables, which the oil company reportedly attributed to funds owed by some defunct banks. But Wadada said no details were provided.
“No bank was mentioned, and no figure was attached to any bank. How then do we accept that figure as an asset?” he asked.
Another issue highlighted by the senator is what the committee described as duplication in subsidy charges amounting to more than N3.8 trillion. According to him, both NNPCL and its subsidiary, the National Petroleum Investment Management Services (NAPIMS), appeared to have recorded subsidy charges separately within the same period.
“NAPIMS charged a subsidy on crude oil proceeds, and NNPC also charged a subsidy on petroleum product proceeds. When you combine the figures, the total exceeds N3.8 trillion,” he said.
Wadada also said the committee would invite the immediate past management of the company to clarify the issues. Those expected to appear include former Group Chief Executive Officer, Mele Kyari, former Chief Financial Officer, Umar Ajiya, and former NAPIMS boss, Bala Wunti.
He said the invitations would be issued after the Eid break through the current management of NNPCL.
Responding to suggestions that the investigation might be politically motivated, the senator insisted the committee was merely carrying out its constitutional oversight responsibilities.
“What is wrong is wrong. Poverty does not respect religion, tribe or political party. Nigerians deserve transparency and accountability in the management of public funds,” he said.
The lawmaker added that the committee would also question the external auditors who certified the company’s financial statements.