A former Chief Financial Officer (CFO) of Nigerian National Petroleum Company Limited (NNPCL), Umar Ajiya, says no money is missing, contrary to reports that the company could not account for N210 trillion audit queries of the Auditor-General for the Federation.
Ajiya stated this on Wednesday before senators in Abuja after presenting his report on the queries raised in the audit reports from 2017 to 2023.
“Mr Chairman and distinguished senators, I want to assure this committee and indeed, all Nigerians that no money is missing.
“Many of us appearing before this committee today have, over the past five or six years, consistently presented and defended the accounts and reports of the company.
“If any money had gone missing during our period of supervision, we would not have had the courage to publish our audited accounts.
“For over 44 years, the company’s accounts were either not prepared or, when prepared, were not made public. In many instances, they were not even made available to the auditor-general.
“We decided to change that culture by ensuring that the accounts were submitted to the auditor-general and published on our website for public scrutiny.
“We wanted Nigerians to examine them, ask questions and help restore trust in NNPC by moving away from the era of opacity.
“Having carefully reviewed the report, I observed that two key figures generated significant public concern.
“The first is the claim that N5.8 billion was spent to register the new company, NNPC Limited,” he said.
Ajiya described the claim as inaccurate, adding that the actual amount used for the registration was N2.9 billion, and was paid directly to two government agencies.
He said that the money was paid to the Corporate Affairs Commission (CAC) and Federal Inland Revenue Service (FIRS), now known as Nigeria Revenue Service (NRS).
“This can be independently verified with both agencies,” he stated.
Ajiya stated that someone might have misinterpreted the accounting records under the Petroleum Industry Act (PIA) or from the Federal Ministry of Finance.
“They are the shareholders representing the Nigerian people. ”
“Since MOFI did not provide the funds for the registration, NNPC paid the registration fees on behalf of the shareholders.
“Subsequently, the relevant entities recorded the transaction in their respective books, as required under standard accounting procedures.
“It appears that whoever advised the committee may have added the figures recorded in different books and mistakenly concluded that N5.8 billion was spent.
“No third party was paid to register the company. The funds were paid directly by NNPCL to government agencies, and that fact can be verified,” he said.
The former NNPCL chief said that unfounded claims had done real damage and harmed the reputations of individuals, the company and Nigeria in general.
“International rating agencies use public information to assess countries; negative, inaccurate reports can hurt Nigeria’s credit rating and our national interests.
“We have seen this before, while seeking about $2.5 billion in Chinese financing for the Ajaokuta-Kaduna-Kano gas pipeline.
“An unpatriotic petition was submitted to Chinese authorities. Despite a sovereign guarantee, the financing was disrupted and the project remains uncompleted.
“Actions like that discourage public servants. At times, it is frustrating.
“But as Nigerians, we remain committed to serving our country and contributing to its development.
“When people claim N210 trillion is missing, they should be asked: where exactly did it go? Agencies like the Nigerian Financial Intelligence Unit and the EFCC should investigate and establish the facts so Nigerians can trust the truth,” he said.
The committee consequently adjourned hearing and directed Ajiya and Dr Bala Wunti, who served as Chief Upstream Investment Officer during the period under review, to reappear before it in two weeks.
