Former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has denied allegations of a ₦210 trillion financial loss in the company’s audited financial statements for 2021, 2022 and 2023, describing the figure as a misunderstanding arising from accounting entries.
Kyari made the clarification on Tuesday while appearing before the Senate Committee on Public Accounts, which is investigating the audited financial statements and financial operations of the national oil company for the three financial years.
He maintained that no money was lost under his leadership, insisting that the figures being interpreted as losses were bookkeeping entries that required proper reconciliation and explanation.
The former NNPC boss, who appeared before the committee alongside his lawyers, said he had studied the committee’s report and adopted the explanations previously submitted by the company’s former Chief Financial Officer and other officials who had appeared before the lawmakers.
Addressing the committee, Kyari also apologised for his absence at its previous sitting, explaining that he was medically indisposed and had encountered other family-related medical circumstances that made his appearance impossible.
He said his absence had generated misunderstandings and misinformation in the public space, adding that he regretted not being able to attend the earlier engagement.
On the controversy surrounding the alleged ₦210 trillion loss, Kyari insisted that the amount did not represent missing funds or financial wrongdoing.
“I confirm this moment that nothing is lost. It’s simply not possible under my care and under my leadership for that to happen,” he told the committee.
He explained that the issue was essentially one of accounting entries and that his written submission contained further explanations on how the figures should be understood.
Kyari also addressed questions surrounding the incorporation and registration of NNPC Limited following the enactment of the Petroleum Industry Act (PIA).
He explained that the approximately ₦2.9 billion payment in question was made to the former Federal Inland Revenue Service and the Corporate Affairs Commission for statutory registration processes.
According to him, the payment was made by NNPC on behalf of the Federation and subsequently charged against federation revenue.
He argued that the PIA provided for the incorporation of the new company, while the Federation was the ultimate owner at the time, making the expenditure a statutory obligation rather than an irregular payment.
Kyari also dismissed reports suggesting that NNPC paid ₦5 billion for the company’s name, explaining that the National Assembly had already provided the company’s name in the relevant provisions of the Petroleum Industry Act.
He said the controversy surrounding the registration expenditure was largely a matter of description in the financial records and expressed readiness to provide further clarification whenever required.
Reflecting on his tenure, Kyari said he introduced a transparency and accountability framework upon assuming leadership of NNPC in 2019, resulting in the publication of the company’s financial records for the first time in its 43-year history.
He said the decision exposed the company to public scrutiny but ultimately strengthened accountability, improved operational efficiency and encouraged cost-saving measures.
He recalled that NNPC recorded a loss of about ₦803 billion in 2018 before his administration, adding that efforts by his management team helped reposition the company towards sustained profitability.
The former GCEO also defended his administration’s commitment to implementing government policies, including the transition towards a market-driven petroleum products regime, while supporting investments in the oil and gas sector, particularly gas development and downstream operations.
Earlier, the committee chairman explained that Kyari’s appearance followed an earlier invitation which he could not honour due to ill health.
He recalled that the former GCEO had sent his lawyers to represent him at the previous sitting, during which the committee’s report was handed over for his review and written response.
The chairman explained that under the committee’s procedures, individuals who receive investigative reports are expected to study them, submit their written observations and provide explanations where necessary.
He said the committee had identified 23 issues in the course of its investigation, but only one or two required specific responses from Kyari.
The chairman further disclosed that the committee would circulate the responses submitted by Kyari and other former NNPC executives to members for examination.
He added that the committee would subsequently invite the Office of the Auditor-General of the Federation to provide professional and statutory guidance on the issues raised and the appropriate way forward.
In his closing remarks, the chairman cautioned that the investigation was far from concluded, drawing attention to two balance-sheet entries of ₦103 trillion and ₦107 trillion, which together amounted to ₦210 trillion.
He explained that while the figures could be described as ₦210 trillion in political terms, an accounting assessment required the committee to examine the debit and credit entries and reconcile the accounts.
The chairman said the committee would scrutinise the figures and could invite Kyari and other former NNPC officials for further questioning if members were not satisfied with their written explanations.
The committee subsequently resolved to discharge Kyari from the sitting pending its review of his submissions and further examination of the outstanding issues.
