PAC Query NNPC Over ₦210 Trillion Missing Funds, Illegal Subsidy Payments …committee vows to subpoena officials as probe deepens

By Iyojo Ameh

The Senate Committee on Public Accounts has accused the Nigerian National Petroleum Company Limited (NNPCL) of failing to account for ₦210 trillion in transactions recorded between 2017 and 2023, raising fresh concerns about transparency in Nigeria’s oil sector.

Speaking at the National Assembly in Abuja, the committee chairman, Senator Aliyu Wadada said the figures were derived from NNPCL’s audited financial statements, which showed ₦103 trillion in approved expenses and ₦107 trillion in receivables during the period under review.

The chairman described the figures as “mind-boggling and contradictory,” noting that NNPCL’s claim of paying ₦103 trillion to joint venture (JV) partners in 2023 alone equivalent to $117 billion could not be justified.

“How can an agency that declared ₦24 trillion in revenue between 2017 and 2022 pay ₦103 trillion to JV partners in one year?” the lawmaker asked. “Cash calls were abolished in 2016, yet NNPC is still hiding behind that to make outrageous claims.”

He explained that the committee, after reviewing NNPCL’s written responses, found no credible evidence to support the payment or the claim that ₦107 trillion in receivables was trapped in defunct banks.

“NNPCL failed to identify the said banks or specify the amounts held. Therefore, both the ₦103 trillion expenditure and ₦107 trillion receivables are unacceptable,” the committee resolved.

He further said the discrepancies justified their demand that NNPCL must account for ₦210 trillion, covering both unjustified expenses and unverifiable receivables.

The Senate Committee also uncovered what it described as illegal subsidy deductions by NAPIMS a subsidiary of NNPCL on crude oil between 2017 and 2021.

According to the committee, pages of NNPCL’s audited reports show that while NAPIMS imposed subsidy on crude oil, NNPC simultaneously deducted subsidy on refined petroleum products, a practice the lawmakers called “unlawful and unacceptable.”

“There is no legal basis for NAPIMS or NNPCL to charge subsidy on crude oil,” the committee stated. “This is a clear violation of the rules of engagement.”

It further faulted NAPIMS for maintaining a separate financial account, contrary to statutory provisions that classify it as a department under NNPCL.

The committee also expressed displeasure over the repeated absence of NNPCL’s Group Chief Executive Officer (GCEO) from its investigative hearings, insisting that all future invitations must be honoured in person.

“From now on, this committee will no longer accept representation from NNPCL,” the chairman warned. “The chief executive must appear personally before the committee whenever invited. Being out of the country will no longer be an excuse.”

The committee reaffirmed its commitment to transparency and accountability in Nigeria’s petroleum sector and vowed to subpoena former NNPC and NAPIMS officials if the current management fails to provide satisfactory explanations for the missing ₦210 trillion and illegal subsidy payments.