…Former NNPC chief insists controversial figure arose from accounting entries, defends N2.99 billion incorporation expenditure, says reforms under his leadership restored transparency and profitability
WED NOV 11 2026-theGBJournal| Former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, on Tuesday faced questions from the Senate Committee on Public Accounts over financial irregularities flagged in the company’s audit, including an alleged N210 trillion loss during his tenure.
But Kyari rejected the allegation, insisting that no money was lost under his leadership and arguing that the controversial figure resulted from accounting entries and bookkeeping descriptions rather than the disappearance of public funds.
Appearing before the committee to address issues arising from the audit of NNPC Limited, Kyari said he had provided explanations on the disputed financial records and was prepared to furnish lawmakers with further information.
“I stated unequivocally before the committee that no such funds were lost. The figure arose from accounting entries and bookkeeping descriptions, not the disappearance or loss of money,” he said in an account of his appearance.
The former NNPC boss also defended the N2.99 billion expenditure associated with the incorporation of NNPC Limited, explaining that the money represented statutory payments to the Federal Inland Revenue Service (FIRS) and the Corporate Affairs Commission (CAC).
According to him, the controversy was not about improper spending but the accounting treatment of the payments and which institution was responsible for bearing the cost under the Petroleum Industry Act (PIA).
“I explained that the amount represented statutory payments to the Federal Inland Revenue Service and the Corporate Affairs Commission in connection with the company’s incorporation,” Kyari said.
“The issue, as I clarified, relates to the accounting treatment and responsibility for the payment under the provisions of the Petroleum Industry Act, rather than any improper expenditure.”
The Senate appearance places renewed scrutiny on the financial management of Nigeria’s state-owned oil company during Kyari’s tenure, first as Group Managing Director of the Nigerian National Petroleum Corporation and subsequently as Group Chief Executive Officer of NNPC Limited.
Beyond defending the disputed transactions, Kyari used his appearance to highlight what he described as far-reaching institutional reforms undertaken during his leadership, particularly efforts to improve transparency, financial accountability and operational efficiency.
He said one of his priorities upon assuming leadership of NNPC in 2019 was to make the institution more accountable to Nigerians, arguing that an organisation entrusted with the country’s natural resources had an obligation to open its books to public scrutiny.
In what he described as an unprecedented move, Kyari said his administration published the company’s financial statements for the first time in its 43-year history.
“When I assumed leadership of NNPC in 2019, one of my foremost priorities was to establish a stronger framework for transparency, accountability and institutional responsibility,” he said.
“I firmly believed that a public institution entrusted with the nation’s resources must be accountable to the people, who are its ultimate stakeholders.”
He acknowledged that publishing the financial records exposed the company to greater public scrutiny, criticism and debate but maintained that the decision was necessary to strengthen institutional governance.
“We understood that transparency would expose the company to greater scrutiny, criticism and public debate. However, we believed that public scrutiny was essential to building a stronger institution,” he said.
Kyari argued that the disclosures generated constructive discussions, recommendations and internal reforms, which, according to him, improved operational efficiency, strengthened accountability and drove cost-saving measures.
He also credited the reforms with helping to turn the company’s financial fortunes around.
“These efforts contributed to a significant improvement in the company’s financial performance, moving from a loss position to sustained profitability,” he said.
The former chief executive expressed satisfaction that the accountability mechanisms introduced under his administration had been retained by the current management, with what he described as encouraging financial results.
His defence also touched on the wider transformation of Nigeria’s petroleum industry following the enactment of the Petroleum Industry Act (PIA), which restructured the sector and provided the legal framework for the transition from the former Nigerian National Petroleum Corporation to NNPC Limited.
Kyari said his administration worked to implement policy decisions of the Federal Government and the National Assembly, including the transition towards a market-based petroleum products regime.
He further pointed to increased investment in the oil and gas industry, the advancement of strategic gas infrastructure projects and the expansion of the downstream petroleum sector during the period.
These developments, he said, were critical to Nigeria’s energy security, economic growth and long-term investment prospects.
“I remain proud of the opportunity to have served NNPC and contributed to the transformation of an institution that is central to Nigeria’s economic development,” Kyari said.
The Senate committee’s examination of the company’s audited accounts has brought renewed attention to questions surrounding the financial records of NNPC Limited and the accountability of its former leadership.
For Kyari, however, the central issue is that the N210 trillion figure should not be interpreted as money that disappeared from the company’s coffers.
He maintained that the disputed entries require proper accounting interpretation and that he remains available to provide further explanations to the lawmakers.
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