A House of Representatives ad hoc committee has questioned the Nigerian National Petroleum Company Limited (NNPCL) regarding N2 trillion allegedly unaccounted for during the company's transition from NNPC.

During the transition process, NNPC's assets were valued at $64 billion (approximately 28 trillion), but only $58.8 billion (26 trillion) were transferred to NNPC Limited, according to the report adopted by the House Committee on the Whole on Tuesday during plenary.

The committee, chaired by Uju Kingsley (APC, Imo), was charged with determining the NNPC's and its subsidiaries' total inventory, assets, interests, and liabilities.

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According to the Petroleum Industry Act, the defunct NNPC was renamed NNPC Limited in July 2022. The transition transformed the entity from a government-run oil company to a private oil company.

The committee stated in its report that NNPC Limited could not account for the N2 trillion disparity.

Mr. President disclosed total assets worth $64 billion (approximately 28 trillion), but only $58.8 billion (26 trillion at official) at a rate of 450 to $1 was transferred, leaving 2 trillion unaccounted for," the report stated in part.

In addition, the committee claimed to have uncovered an additional N2 trillion liability owed to AGIP Petroleum Limited, but provided no evidence to support its claim.

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In addition, the committee stated that it uncovered additional instances of fraud committed by companies affiliated with NNPC subsidiaries.

“Information available to us suggests that some subsidiaries of NNPC, with locations in foreign countries, buy crude oil and gas from NNPC without evidence of their payments for the purchases. These companies are indicted to be operating without employees and no fixed assets; yet over N30 billion is traceable to some of them,”  a report stated.

Recommendations

The committee suggested an audit of the alleged N2 trillion liability inherited by NNPC Limited. It also demanded a forensic audit of all NNPC bank accounts to determine the genuine amount owed to each bank based on loans granted.

In addition, the audit would include the transfer of funds from NNPC accounts and bank fees.

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In addition, the committee requested that the federal government investigate the foreign desk offices of NNPC subsidiaries with overseas locations, require international oil companies to establish offices in Nigeria, and devise a framework to hold the companies accountable to Nigerian law.

The recommendations of the committee were adopted by the Committee of the Whole House without amendment.