Former Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company Ltd. (NNPCL), Mele Kyari, has told the Senate that the controversial N210 trillion reflected in the company’s financial records was not missing.
Rather, he said that the amount represented accounting entries, which had nothing to do with any financial loss.
Kyari made the clarification on Tuesday when he appeared before the Senate Public Accounts Committee investigating the audited financial statements and financial operations of NNPC Ltd. for 2021, 2022 and 2023.
The committee, chaired by Sen. Ibrahim Dankwambo, had resolved to invoke its constitutional powers to compel Kyari’s appearance, following his alleged failure to honour previous invitations.
Appearing before the committee with his legal team, Kyari explained that the N210 trillion, which had generated public concerns, arose from accounting entries and book keeping issues rather than any financial loss.
He insisted that no money was lost under his leadership of the national oil company, adding that the necessary explanations were contained in his written response to the committee’s report, which he formally submitted.
Kyari said two major issues required his specific clarification, namely: the N210 trillion reflected in the financial records and payments relating to the registration and incorporation of NNPC Ltd.
On the N210 trillion, he said: “I wish to confirm that nothing was lost. It is simply not possible that such an amount could have been lost under my care and leadership.
“The matter relates to accounting entries, which have nothing to do with any financial loss. They are book keeping issues, and I believe the appropriate explanations have been provided in my report.”
Addressing the second issue, Kyari explained that it concerned payments made to Nigeria Revenue Service (NRS), Corporate Affairs Commission (CAC) and other relevant institutions during the incorporation of NNPC Ltd.
He said the matter bordered on determining the responsibility for the payments, noting that the Petroleum Industry Act (PIA) provided that the owners of the company should undertake its incorporation.
Kyari further stated that the ownership structure of NNPC at the time of incorporation was different from its present arrangement, adding that NRS had clarified that the company now belonged to the federation.
Kyari said the federation was responsible for the incorporation payments, but NNPC made the payments on its behalf and subsequently charged the expenses to the federation’s revenue.
He also apologised to members of the committee over his failure to attend previous investigative hearings, attributing his absence to medical and family-related circumstances.
“I sincerely regret that I was unable to be with you during those hearings. My absence was unavoidable because I was medically indisposed and also had some family-related medical issues,” he said.
Earlier, Dankwambo said the investigation was aimed at examining NNPC’s financial records, transactions, operational activities and compliance with relevant statutory requirements.
The chairman recalled that Kyari was initially scheduled to appear before the committee on June 10 but communicated through a letter that he was indisposed and requested a rescheduled appearance.
He said the committee had subsequently forwarded its report to Kyari through his legal representative, requesting him to study the findings and submit a written response for members’ consideration.
Dankwambo disclosed that the report contained 23 issues, but only one or two required specific explanations from the former GCEO, including the controversial financial entries.
He drew attention to N103 trillion and N107 trillion reflected on opposite sides of NNPC’s balance sheet, explaining that although the figures amounted to N210 trillion when added together, the accounting difference was N4 trillion, which required reconciliation.
The chairman stressed that the investigation was not yet concluded, adding that the committee would reconvene to examine Kyari’s submissions and seek further clarifications where necessary.
The committee subsequently discharged Kyari, pending further consideration of his written response.
