NNPCL Ignores Senate Oversight, Raises Concerns

Checks and balances help good governance in any democracy. Nigeria’s 1999 Constitution, as amended, includes rules for the Executive, Legislature and Judiciary to support this goal for the public good.

Unfortunately, the National Assembly is struggling to do its job. Government agencies often avoid scrutiny when needed. Two recent cases involving the Nigerian National Petroleum Company Limited (NNPCL) show this problem. These cases highlight issues with how Nigeria manages its key resources.

According to Section 89 of the 1999 Constitution, the National Assembly can oversee or investigate any matter it can legislate on. Section 88 (a) allows it to issue a warrant to compel anyone who fails to attend when summoned.

Frustrated with NNPCL’s continuous disregard for its authority, the Deputy Chairman of the Senate Committee on Petroleum Resources (Upstream), Allwell Onyesoh, walked out of a meeting last week. The agency's top officials had ignored repeated invitations to discuss crude oil theft. The oil sector is currently under review, making their presence at these meetings even more important.

The senator said, "They keep writing letters saying they are travelling to Congo; travelling here and there, just to dodge simple things. Was the Group Chief Executive Officer (GCEO) appointed to keep travelling or to work? Is Nigeria’s problem outside the country or here in Nigeria? How is it possible that the Group CEO, his deputy, directors and the entire management are all travelling at the same time?"

The Senate committee needs NNPCL to provide records and answer important questions from the documents submitted. Despite NNPCL’s absence, the committee continues its work. A legislative review of the oil sector without NNPCL’s input will be like a puzzle with missing pieces.

The Senate Petroleum Resources Committee’s work follows findings from an ad hoc committee that looked into oil theft and forensic audits, led by Ned Nwoko. Its worrying interim report from November 2025 revealed $22 billion, $81 billion and $200 billion in lost revenues at different times. It blamed weak oversight and sabotage for these massive losses.

Oil export terminals and pipelines in Nigeria frequently face attacks. Chatham House, a UK think-tank, described the scale of the theft in 2014 as being "on an industrial scale." It specifically pointed to “politicians, military officers, militants, oil industry personnel, oil traders and communities” as culprits.

NNPCL has been avoiding a summons since July 2025 to explain ₦210 trillion in oil revenue from 2017 to 2023 before the Senate Committee on Public Accounts. It took months before the current Group CEO, Bayo Ojulari, came forward, asking for more time to understand the issues from before his time.

The Auditor-General of the Federation raised 19 queries about these expenditures during Mele Kyari’s time as GCEO of NNPC. The details included ₦103 trillion in expenses and ₦107 trillion (about $117 billion) in receivables. Nigeria does not have even half of this in its Foreign Reserve. NNPCL claims it paid ₦103 trillion in cash calls to Joint Ventures in 2023.

But cash calls were abolished in 2016 under Buhari’s administration. This raised questions from the committee, led by Aliyu Wadada. He asked, "How can NNPC claim to have paid ₦103 trillion in one year, when it only generated ₦24 trillion in revenue over five years?" The ₦107 trillion receivables were also questioned. NNPCL said part of this is with defunct banks. “However, no bank or amount was named,” Mr Wadada replied.

It is clear why there are inconsistencies in what NNPCL is saying. A few months ago, Mr Wadada emphasized that the ₦107 trillion receivables contradict earlier facts and evidence provided by NNPCL to the committee.

It is frustrating that the unaccounted for ₦210 trillion, pointed out by the Auditor General of the Federation, is being ignored. This undermines Nigeria’s fight against corruption and is deeply troubling in a country where over 139 million people live in poverty. Sadly, Nigeria keeps borrowing money from abroad while failing to stop leaks that could reduce this need.

Public Accounts is the only legislative committee mentioned in the Constitution due to its importance in checking spending. Third parties cannot do this job. So, our federal lawmakers must improve their oversight of public funds. For example, in the US, Congress demands a monthly report on the balance sheet of the Federal Emergency Management Agency.

PREMIUM TIMES holds the President of the Senate, Godswill Akpabio, responsible for NNPCL’s ongoing issues with the legislature. The Senate has the power to oversee in the public interest, but it seems like a lack of urgency and compromises are getting in the way.

With its actions, NNPCL is setting a bad example for other agencies. This is clear from its failure to respond to the Senate Committee on Finance regarding internally generated revenues from 2023 to 2025. The Senate had to ask the Secretary to the Government of the Federation to make NNPCL’s management appear before it.

These governance problems explain why Nigeria’s waters are full of rogue oil ships, including the super tanker, MT HEROIC IDUN from Norway. It entered our waters in August 2022 and went to Akpo Oil Field without any papers or clearance from the authorities.

Clearly, NNPCL’s lack of accountability goes against everything President Bola Tinubu’s Renewed Hope Agenda stands for. As the supposed Minister of Petroleum Resources, he should address this issue now.