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- Says NNPC, NAPIMS charged illegal subsidies on crude from 2017 to 2021
- Insists Ojulari must appear in person to answer queries
From Adesuwa Tsan, Abuja
The dispute between the Senate and the Nigerian National Petroleum Company Limited (NNPCL) escalated yesterday after the Senate Committee on Public Accounts rejected the company’s expenditure claims totalling N210 trillion and faulted its management for failing to appear before it.
The committee, chaired by Aliyu Wadada, expressed outrage that the NNPCL’s management failed to honour an invitation to clarify discrepancies in its 2017–2023 audited financial statements, despite agreeing to the date.
“At our last meeting with the management of the NNPCL, we agreed that they would appear today to respond to 19 questions arising from their audited accounts,” Senator Aliyu said. “This date was chosen by the NNPCL itself. It is unfortunate that on a date they selected, not a single management’s official deemed it fit to show up.”
He described the company’s absence as a deliberate act of disregard for legislative oversight and public accountability. “The public has been waiting for this. Even though we cannot conclude today, Nigerians deserve to know the issues at stake,” he added.
The committee said after careful review of the documents submitted by the national oil company, it came to a conclusion that the responses were unacceptable and resolved to reject them because the figures were inconsistent and lacked evidence.
“NNPCL claimed N103 trillion as accrued expenses and N107 trillion as receivables totalling N210 trillion. Their explanation for the N107 trillion receivables, equivalent to about $117 billion, contradicts their own documents. These claims are unjustifiable and unacceptable,” the chairman stated.
He also questioned how NNPCL could have paid N103 trillion in joint venture cash calls in 2023 alone when it generated only N24 trillion in crude oil revenue between 2017 and 2022.
“Cash call arrangements were abolished in 2016 under the Buhari administration. How can the NNPCL claim to have paid N103 trillion in one year when it generated N24 trillion in five years? That figure must be rejected and returned to the treasury,” he said. The committee further described NNPCL’s claim that N107 trillion in receivables was lodged in defunct banks as baseless and opaque. “No bank or amount was named. This lack of transparency is unacceptable. The NNPCL must account for N210 trillion,” the chairman stressed.
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Beyond the questionable figures, the committee said it also uncovered what it described as illegal subsidy charges by the NNPCL and its subsidiary, the National Petroleum Investment Management Services (NAPIMS), between 2017 and 2021.
“Between 2017 and 2021, NAPIMS charged subsidies on crude oil, which is illegal. There is no provision in our laws for subsidy on crude,” the chairman explained. “At the same time, NNPCL charged subsidies on refined petroleum products, such as kerosene, diesel and petrol. These charges appear in their audited statements on pages 38.9, 39.9 and 41.8 for NAPIMS, and note 8.1 on pages 56 to 59 for the NNPCL. This practice is both illegal and unacceptable.”
The committee warned that it would summon former NNPCL and NAPIMS’ officials if the current management failed to provide satisfactory answers, while insisting that the Group Chief Executive Officer, Olufemi Ojulari, must personally appear before it.
“If the present management of NNPCL is finding it difficult to provide acceptable answers, we will subpoena former officials. NAPIMS is a department under the NNPCL and cannot maintain an independent account,” the chairman said. “At any point this committee invites NNPCL, the Chief Executive must appear in person. Being out of the country will no longer be accepted as an excuse.”
Reaffirming the committee’s position, Aliyu said the investigation would continue despite NNPCL’s absence. “We are not the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC). Our duty is to ensure transparency and constitutional oversight. Appearing before the EFCC or the ICPC does not exempt anyone from legislative scrutiny.
“This administration needs the cooperation of all institutions. We will do everything within the law to ensure public funds are judiciously used and that NNPCL makes the necessary refunds to the government,” he said.
Speaking further, Adams Oshiomhole commended the committee’s stance, describing NNPCL’s attitude as arrogant and dismissive of public accountability. “Some people think NNPCL is above the country, behaving as if Nigeria is its parastatal,” he said.
“The sums involved are larger than what our president is struggling to borrow from foreign countries. Charging subsidies on crude and refined products is monumental fraud.”
He called for strict enforcement of legislative powers, saying, “The 1999 Constitution gives this committee the power to arrest the GCEO of NNPCL if he refuses to appear. We must exercise that power if necessary.”
