Senate Squares Up with NNPCL over N210trn Oil Revenue

Nigeria’s Senate has ignited a political firestorm over N210 trillion in disputed oil revenues linked to the Nigerian National Petroleum Company Limited (NNPCL). With threats of arrest warrants against former and current officials, the confrontation signals a defining test of accountability, legislative authority and transparency in the management of the nation’s vast petroleum wealth. Sunday Aborisade reports.

 A dramatic confrontation is unfolding at the heart of Nigeria’s political and economic establishment. At stake is a staggering N210 trillion, a figure so enormous that it has ignited fierce debate within the corridors of power and raised troubling questions about transparency in the management of the nation’s oil wealth.

The Senate’s Public Accounts Committee (SPAC) has drawn a hard line, threatening to issue a warrant of arrest against former and serving officials of the Nigerian National Petroleum Company Limited (NNPCL) if they fail to explain how the colossal amount surfaced in the company’s audited accounts without clear reconciliation.

For lawmakers, the matter is not merely about accounting irregularities; it is about public trust, institutional accountability and the credibility of Nigeria’s most strategic revenue-generating enterprise. The unfolding standoff has set the stage for one of the most consequential legislative probes in recent years.

At the centre of the storm is the former Group Chief Executive Officer of the NNPCL, Mele Kyari, along with other senior officials who managed the national oil company during the period under investigation.

The Senate committee, chaired by Senator Aliyu Wadada, has summoned Kyari, the former Chief Financial Officer, Umar Ajia Isa, and the former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Dr. Bala Wunti.

They are expected to appear before the panel alongside the current leadership of the company to respond to audit queries covering the period between 2017 and 2023.

The lawmakers’ message has been unequivocal: failure to honour the invitation could lead to compulsory appearance through an arrest warrant. Wadada, speaking after a committee meeting in Abuja, made it clear that the Senate would not tolerate any attempt to evade accountability.

He said, “The NNPCL should refund the sum of N210 trillion, being the combined figure of N103 trillion and N107 trillion, which were not properly accounted for as contained in the audit reports. NNPCL should and must account for the two figures.”

Wadada was even more emphatic in detailing the committee’s concerns.

He said, “Five billion naira is also lingering on NNPCL. In this day and age, who will comprehend such a figure to be expended just to change the name of NNPC incorporation from NNPC to NNPCL? Five billion naira !

“NNPCL should refund the sum of N210 trillion being the combined sum of N103 trillion and N107 trillion which were not properly explained to the committee as the aggregate sum cannot be netted off in tandem with accounting principles.

“Mele Kyari as the Group Managing Director, Umar Ajia as the Chief Financial Officer and Bala Wunti as the then GGM NAPIMS should and must appear before the committee and be led by the present management with the entire body of the external auditors that served within the period under review that put together this report.

“NNPC paid N2.9 billion for incorporation expenses from petroleum product proceeds while NAPIMS charged another N2.9 billion against crude oil revenue for the same purpose.

“This resulted in a combined total amount of N5.9 billion being expended for incorporation by NNPCL just to change the name from NNPC to NNPCL, which is unacceptable and rejected.”

The committee’s insistence reflects the gravity of the situation. The amount in question dwarfs many of Nigeria’s annual budgets and represents a significant portion of the country’s cumulative public revenues over several years.

The controversy stems from findings contained in the audited financial statements of the NNPCL and queries raised by the Office of the Auditor-General for the Federation.

Two major figures have triggered alarm within the Senate.

The first is N103 trillion, which the NNPCL claimed represents cumulative expenditure by its joint venture partners through cash calls since 2017.

The second is N107 trillion, recorded in the company’s financial statements as subsidy-related receivables owed by banks and other entities.

When combined, the figures amount to N210 trillion. A number that senators say remains insufficiently explained. For the committee, the explanation offered by the oil company so far has been far from convincing.

Wadada dismissed the response provided by NNPCL officials during earlier interactions with the panel, saying the explanation failed to clarify the origins and legitimacy of the figures.

He said, “NNPCL responded that the N103 trillion represented cumulative amounts expended by NNPCL joint venture partners from JV cash calls since 2017.

“This response is unacceptable and the figure of N103 trillion is still hanging and must be properly explained.”

The committee insists that the public deserves clarity on how such an enormous amount could appear in the financial records of the country’s most critical economic institution without proper reconciliation.

Beyond the massive financial discrepancies, the Senate has also raised eyebrows over a seemingly smaller but symbolically significant expenditure: N5.9 billion reportedly spent on changing the company’s name from NNPC to NNPCL following the implementation of the Petroleum Industry Act (PIA).

The transformation from the Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company Limited was meant to mark the transition of the state oil company into a commercially driven entity.

However, senators have questioned why such a large sum was required for what they described as a corporate transition exercise.

“To us in the committee, this is unacceptable and satisfactory explanations must be given,” Wadada said.

Tensions between the Senate and the NNPCL escalated further in July 2025 when lawmakers threatened to issue an arrest warrant against the company’s current Group Chief Executive Officer, Engr. Bayo Ojulari.

Ojulari had failed to appear before the committee four consecutive times, prompting outrage among lawmakers who interpreted his absence as an attempt to evade legislative scrutiny.

During one particularly tense session, a letter delivered by the company’s Chief Financial Officer, Dapo Segun, explained that the CEO had been summoned by President Bola Tinubu and could not attend the Senate hearing. But the explanation failed to calm the aggrieved lawmakers.

“This is the fourth time he’s avoiding us,” Wadada said at the time.

“The National Assembly is not an institution to be taken lightly. Enough is enough.”

Several senators echoed similar sentiments, warning that persistent absence from the hearings would be treated as contempt for the legislative arm of government.

The confrontation between the Senate and the NNPCL highlights a deeper institutional struggle: the balance between legislative oversight and executive authority.

Under Nigeria’s 1999 constitution (as amended), the National Assembly is empowered to investigate the finances of public institutions and ensure that government revenues are properly managed.

Section 85 of the Constitution grants the Auditor-General the authority to examine the accounts of public institutions, a provision that the Senate committee has invoked in directing a forensic audit of the NNPCL’s financial statements.

For lawmakers, the probe represents a crucial test of whether Nigeria’s oversight institutions can hold powerful economic actors accountable. “This will not just go down the drain,” Wadada insisted.

The committee has also directed the NNPCL to remit to the treasury all production costs charged against crude oil revenues during the period under review, arguing that the corporation and its subsidiaries were not directly responsible for crude oil production.

Few institutions carry as much political and economic significance in Nigeria as the national oil company.

For decades, the NNPCL, formerly the NNPC,  has stood at the centre of Nigeria’s oil industry, managing billions of dollars in petroleum revenues and acting as the government’s commercial vehicle in the sector.

Yet the company has also faced persistent allegations of opacity and mismanagement.

Critics argue that despite reforms introduced under the Petroleum Industry Act, the oil giant still operates within a complex web of political interests and bureaucratic secrecy.

The Senate probe therefore represents more than a routine legislative exercise. It is a moment of reckoning for Nigeria’s oil governance framework.

The controversy comes at a time when President Tinubu’s administration is pushing ambitious reforms aimed at restructuring Nigeria’s petroleum industry and restoring investor confidence.

The government has repeatedly emphasised transparency and accountability as key pillars of its economic strategy under the Renewed Hope Agenda.

For the Senate, the investigation into the NNPCL’s accounts aligns with that broader reform narrative.

Lawmakers say ensuring that every kobo generated from the nation’s oil wealth is properly accounted for is essential to funding the government’s development programmes.

“These figures are mind-boggling,” Wadada said during one of the hearings. “They are scary and worrisome.”

The implications of the investigation extend far beyond the walls of the Senate chamber.

Nigeria remains heavily dependent on oil revenues to finance government spending, infrastructure projects and social programmes.

At a time when the country faces mounting fiscal pressures and growing public demand for transparency, the outcome of the Senate probe could shape public confidence in the management of national resources.

If the Senate succeeds in compelling full disclosure from the NNPCL, it could mark a turning point in Nigeria’s long struggle for accountability in the petroleum sector.

But if the investigation falters, critics warn it may reinforce the perception that powerful institutions remain beyond scrutiny.

For now, the Senate appears determined to pursue the matter to its logical conclusion.

The committee has ordered the NNPCL to provide detailed explanations of the disputed figures and directed the Auditor-General to conduct a forensic review of the company’s financial records.

Former and current officials are expected to appear before the panel to clarify the issues raised in the audit reports.

Whether the confrontation ends in vindication, sanctions or sweeping reforms remain uncertain.

What is clear, however, is that the N210 trillion question has opened a new chapter in Nigeria’s ongoing debate over transparency, accountability and the stewardship of its vast oil wealth.

And as the Senate presses forward with its investigation, the nation watches closely, fully aware that the outcome may reshape the future of governance in Nigeria’s most vital industry.