Former Group Chief Executive Officer of the 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 but represented accounting entries.
Kyari made the clarification on Tuesday when he appeared before the Senate Public Accounts Committee investigating the audited financial statements and operations of NNPC Ltd. for 2021, 2022 and 2023.
The committee, chaired by 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 said the N210 trillion that had generated public concern arose from accounting entries and bookkeeping issues rather than any financial loss.
He insisted that no money was lost under his leadership of the national oil company, adding that he had provided the necessary explanations in his written response to the committee’s report.
Kyari said two major issues required specific clarification: 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 bookkeeping issues, and I believe the appropriate explanations have been provided in my report.”
On the second issue, Kyari explained that it concerned payments made to the 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 responsibility for the payments, noting that the Petroleum Industry Act (PIA) provided that the owners of the company should undertake its incorporation.
Kyari said NNPC’s ownership structure at the time of incorporation differed from its present arrangement, adding that the NRS had clarified that the company now belonged to the federation.
He said the federation was responsible for the incorporation payments, but NNPC made them on its behalf and subsequently charged the expenses to the federation’s revenue.
Kyari also apologised to committee members for failing 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 subsequently forwarded its report to Kyari through his legal representative, asking him to study the findings and submit a written response for members’ consideration.
Dankwambo said 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 and 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 clarification where necessary.
The committee subsequently discharged Kyari, pending further consideration of his written response.
