Kyari Denies NNPC N210tn Missing, Cites Accounting Entries

• Mele Kyari, former GCEO of Nigerian National Petroleum Company Limited, recently denied allegations of N210tn missing from the company's accounts.
• He clarified that discrepancies in NNPC's 2017-2023 audit reports were accounting entries, not actual financial losses.
• Kyari also refuted claims of N5bn spent on the company's name change, stating N2.99bn was for incorporation costs paid on behalf of the Federation.
• Under his leadership from 2019, Kyari asserted that NNPC transformed from a loss-making entity to one achieving sustained profits.
• The Senate Committee on Public Accounts is currently reviewing Kyari's explanations and supporting documents.

The former Group Chief Executive Officer firmly asserted that the identified discrepancies in the company's 2017-2023 audit reports stemmed from bookkeeping issues, not actual financial infractions or missing funds.

Mele Kyari, the immediate past Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), recently appeared before the Senate Committee on Public Accounts to address significant financial allegations. During his testimony, Kyari vehemently denied claims that a staggering N210tn was unaccounted for within the company's financial records. He maintained that no funds were lost during his tenure, which spanned from 2019 to 2025, asserting that the figures flagged by auditors were purely a matter of accounting entries rather than evidence of financial malfeasance.

Kyari clarified that the identified discrepancies, which emerged from NNPC's audit reports covering the period between 2017 and 2023, represented bookkeeping issues. He emphasized that these issues had been mistakenly interpreted as financial infractions, leading to the public allegations. The former GCEO informed the committee that comprehensive explanations addressing these points had already been submitted in his written response, aiming to dispel any notions of missing funds under his stewardship.

Delving deeper into the specifics, Kyari elaborated on the nature of the N210tn in question, reiterating that these were "bookkeeping issues" and not indicative of any financial loss. He stressed the impossibility of such a substantial amount disappearing under his watch, reinforcing that the matter pertained solely to accounting entries. The former Group Chief Executive Officer firmly asserted that the identified discrepancies in the company's 2017-2023 audit reports stemmed from bookkeeping issues, not actual financial infractions or missing funds. Furthermore, the former NNPC boss tackled another audit query concerning the cost associated with the company's incorporation and name change following the enactment of the Petroleum Industry Act (PIA) in 2021.

He dismissed allegations that N5bn was expended on merely changing the name of the Nigerian National Petroleum Corporation to NNPC Limited. Instead, Kyari explained that the actual cost for the incorporation process amounted to approximately N2.99bn. This payment, he clarified, was initially made by NNPC on behalf of the Federation and subsequently charged to the government's revenue account, reflecting an accounting entry for services rendered by government institutions. He explicitly stated that any suggestion of N5bn being paid for the naming of the company was incorrect.

Beyond addressing the specific audit queries, Kyari utilized his appearance before the Senate Committee to defend his overall management of the Nigerian National Petroleum Company Limited. He highlighted a significant transformation of the national oil company, asserting that his administration successfully steered it from a loss-making entity to a profitable enterprise. Prior to his assumption of office as Group Managing Director in 2019, NNPC had recorded a substantial loss of approximately $803bn in 2018.

Kyari detailed the strategic efforts undertaken during his leadership to restructure operations, which ultimately led to the company achieving sustained profits. This financial turnaround marked a historic milestone, as it was the first time in NNPC's 44-year existence that it had reported consistent profitability. This achievement, he suggested, underscored the effectiveness of the management decisions made under his guidance.

Following Kyari's detailed submissions, Senator Ibrahim Dankwambo, who chairs the Senate Committee on Public Accounts and represents Gombe North, acknowledged the explanations provided. Dankwambo indicated that the committee would undertake a thorough examination of all the figures and supporting documents presented by the former GCEO.

The committee's review process will determine whether further action is required, including the possibility of re-inviting Kyari for additional clarification. For now, the committee has received responses to the two primary issues concerning his leadership of NNPC during the period under scrutiny.

This development underscores the critical need for robust financial record-keeping and clear communication of accounting practices within state-owned enterprises like NNPC. Lawyers and compliance officers should advise clients on ensuring transparent financial reporting and internal controls to effectively address and differentiate between genuine financial infractions and bookkeeping issues during regulatory scrutiny or parliamentary inquiries.

Source: Original reporting via Punch Newspaper