The Senate Committee on Public Accounts has expressed serious concerns over the reported N5.9 billion spent on the rebranding of the Nigerian National Petroleum Corporation (NNPC) to the Nigerian National Petroleum Company Limited (NNPCL), while also highlighting financial discrepancies totaling approximately N210 trillion.
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The Senate committee’s chairman, Aliyu Wadada Ahmed, made the remarks during a public hearing in which lawmakers scrutinized the financial records of the national oil company.
Wadada described the funds used for the NNPC-to-NNPCL transition as excessive and questioned the justification for such spending.
“In this day and age, who will comprehend such a figure being expended just to change the name of NNPC to NNPCL?” He queried.
According to documents reviewed by the committee, NNPC reportedly 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.
Wadada said the duplication resulted in a combined total of about N5.9 billion being spent on incorporation.
“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,” he stated.
The senator also raised concerns over financial figures amounting to about N210 trillion comprising N103 trillion and N107 trillion which he said were not properly explained to the committee.
“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,” Wadada said.
The Senate 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.
“Mele Kyari as the Group Managing Director, Umar Ajiya as the Chief Financial Officer, and other officials involved must appear before the committee,” Senate Chairman said.
He added that the present management of NNPCL must also appear with the external auditors who handled the company’s accounts during the period under review to provide explanations on the disputed figures.
The Senate committee further stated the hearing is part of its ongoing effort to ensure accountability and transparency in the management of public funds in the country’s oil sector.
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