House of Representatives Summons NNPC Ltd Over Alleged Irregular Payment Practices

The House of Representatives has directed the Nigerian National Petroleum Company Limited (NNPC Ltd) to appear before its investigative committee following concerns raised over alleged irregular financial transactions linked to the national oil firm. Lawmakers issued the summons as part of an ongoing probe aimed at uncovering inconsistencies in payment processes, revenue remittances and expenditure patterns reportedly associated with the company’s operational activities.

The directive came after members of the House Public Accounts Committee examined documents suggesting gaps in accountability and compliance across certain NNPC Ltd transactions. The committee, which is mandated to scrutinise the financial records of publicly funded entities, stated that several payment claims required further clarification from senior officials of the national oil company. Lawmakers argued that the alleged irregularities could undermine transparency in the petroleum sector and potentially weaken public confidence in government institutions if not addressed promptly.

Committee members stressed that the appearance of NNPC Ltd before the panel was necessary to provide explanations regarding payments flagged during the review of audit reports and revenue reconciliation exercises. According to legislators, some of the transactions under scrutiny involved questions about approvals, documentation, remittance timelines, and adherence to statutory financial guidelines. They insisted that NNPC Ltd, being a critical institution responsible for managing the nation’s oil wealth, must uphold the highest standards of accountability.

The House committee noted that previous invitations extended to NNPC officials were not fully honoured, prompting lawmakers to adopt a firmer stance to ensure compliance. Members of the committee warned that failure to appear before the National Assembly constitutes a violation of constitutional provisions empowering the legislature to carry out oversight functions on government institutions. They said the refusal of any publicly owned corporation to cooperate with parliamentary investigations amounts to an obstruction of legislative duties.

The lawmakers maintained that the current investigation was not a witch-hunt but part of the National Assembly’s responsibility to ensure prudent management of public resources. They emphasised that the probe seeks to uncover the root of discrepancies identified in payment records and to determine whether proper internal controls were followed. The committee also indicated that the investigation will examine whether the alleged irregularities were caused by administrative lapses, lack of coordination among departments, or deliberate actions contrary to established procedures.

Sources within the House revealed that some of the payments in question relate to operational expenditures, funding mechanisms for joint venture operations, remittances from crude oil sales, and financial obligations tied to pipeline maintenance and security. Lawmakers argued that Nigeria’s high dependence on oil revenue makes it imperative for NNPC Ltd to maintain full transparency in its financial dealings. They warned that lapses in payment accountability could contribute to revenue leakages at a time when the federal government is grappling with fiscal pressures.

Members of the committee further explained that the investigation aligns with broader efforts to strengthen oversight mechanisms within the petroleum sector, particularly following the implementation of the Petroleum Industry Act. Legislators stated that while NNPC Ltd now operates as a commercially oriented limited liability company, it remains accountable to Nigerians and subject to legislative scrutiny. They noted that public interest in the operations of NNPC Ltd remains high due to its strategic role in national economic management.

Several lawmakers voiced concerns that inconsistent payment practices, if confirmed, could disrupt partnerships with international oil companies, hinder investment confidence and affect the nation’s ability to meet production targets. They also argued that ensuring clarity in financial flows within the oil industry is essential for accurate revenue forecasting and budgeting. According to them, the probe was necessary to promote transparency across the entire value chain, from upstream operations to revenue collection.

In response to the summons, industry observers expressed hope that NNPC Ltd would engage fully with the committee to address the issues raised. Analysts noted that cooperation between the legislature and national institutions is necessary for improving corporate governance practices in state-owned enterprises. They argued that the investigation, if conducted fairly and transparently, could help strengthen accountability frameworks and enhance the reliability of financial reporting within the petroleum industry.

Civil society groups also weighed in, urging NNPC Ltd to appear before the committee and provide detailed explanations about the transactions under review. They said Nigerians deserve clarity, especially in a sector that has historically faced concerns over opaque financial dealings. The groups emphasised that parliamentary oversight plays a crucial role in safeguarding the nation’s resources and ensuring they are used for public benefit.

The House committee reaffirmed its commitment to following due process throughout the investigation and assured that its findings will be based on evidence presented by all parties. Lawmakers added that they will not hesitate to recommend appropriate measures if any wrongdoing is established, including sanctions against officials found to have violated financial regulations.

 

As the probe progresses, the National Assembly insists that NNPC Ltd must honour its invitation without delay. The House stressed that compliance with legislative oversight is non-negotiable, particularly for a corporation that manages the bulk of Nigeria’s revenue. Lawmakers said that the forthcoming appearance of NNPC officials will be crucial for clarifying payment discrepancies and restoring public trust in the financial integrity of the nation’s petroleum sector.