Kyari denies N210tn loss, blames auditors for misreading accounts

Former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has denied allegations of financial losses involving N210tn under his leadership, blaming the controversy on what he described as auditors' misinterpretation of accounting entries.
Kyari made the defence on Tuesday while appearing before the Senate Committee on Public Accounts, insisting that the disputed figures did not represent missing funds or financial losses.

He challenged the interpretation of the company's audit records and questioned submissions made by some former NNPCL financial officers.
“I confirm this moment that nothing is lost,” he told the lawmakers.

“It's simply not possible under my care and under my leadership for that to happen. But it did not happen, and there are actually entry issues, which I know have been clarified. They are all issues of bookkeeping that have nothing to do with any losses.”
The former NNPCL boss said the N210tn controversy arose from accounting entries that had been wrongly interpreted in the audit reports, adding that a proper examination of the company's financial records would clarify the discrepancies.
He also defended the N2.99bn expenditure on the incorporation of NNPCL, dismissing suggestions that the money was spent improperly to secure the company's registration or name.

According to him, the expenditure covered statutory services provided by government agencies during the transition of the former Nigerian National Petroleum Corporation into a limited liability company under the Petroleum Industry Act.
Kyari explained that the incorporation process was the responsibility of the company's owners, adding that NNPCL made the payment on behalf of the Federation and subsequently charged it to Federation revenue.

He insisted that the money went to government institutions legally authorised to handle the statutory process.
On allegations that payments were made to the National Assembly to secure the company's name, he said the name was already provided for in the Petroleum Industry Act.
“Actually, this company was named by the National Assembly, so you don't need to pay any kobo to register that company,” he said.
Defending his tenure, Kyari claimed his administration introduced financial transparency and accountability measures that opened the company's books to public scrutiny for the first time in its 43-year history.

He said the reforms exposed operational weaknesses and improved the company's financial performance.
The former chief executive also claimed that NNPCL recorded a loss of $803bn in 2018, before he assumed office in 2019, but returned to profitability following reforms and cost-cutting measures implemented under his leadership.
He further defended his administration's implementation of Federal Government and National Assembly decisions on petroleum sector reforms, including the transition towards a market-based petroleum products regime and efforts to attract investment into the oil and gas industry.
Kyari also apologised for failing to honour previous invitations from the committee, attributing his absence to medical and family-related circumstances.
However, the Senate said his appearance and explanations would not end the investigation into the disputed N210tn.
The Chairman of the Committee on Public Accounts, Senator Ibrahim Dankwambo, said lawmakers would examine Kyari's submissions alongside the audit reports and explanations from other former NNPCL officials.
He disclosed that the committee would obtain copies of the relevant reports and responses for detailed scrutiny and invite the Office of the Auditor-General of the Federation to clarify the issues raised.
Dankwambo said the lawmakers would reconcile the disputed figures and examine the accounting treatment that produced the N210tn under investigation.
“We will look at the figures. We will interrogate the figures. It is not over,” he declared.
The committee chairman explained that two items on NNPCL's balance sheet, when examined from different accounting perspectives, produced the disputed figure.
Although the lawmakers voted to allow Kyari to leave after his presentation, Dankwambo stressed that the decision did not amount to an exoneration or termination of the investigation.
He said the former NNPCL chief or other former executives could be invited again if further explanations were required.
The Senate's investigation will therefore continue, with lawmakers seeking to establish whether the disputed N210tn has been properly accounted for and whether the explanations provided by the former management are supported by the company's financial records.