Business

NNPC Staff Cooperative in Turmoil Over Missing N806 Million

The NNPC Staff Cooperative Multipurpose Society has plunged into a deepening crisis, with members raising the alarm over alleged financial misappropriation and what they describe as unlawful interference by the Lagos State Ministry of Commerce, Cooperative, Trade, and Investment. At the heart of the controversy lies an unresolved N806 million discrepancy in the society’s 2022 financial records — a deficit that has fueled widespread outrage, multiple lawsuits, and demands for a forensic audit.

Unexplained Financial Loss Sparks Crisis

The society, which consists of over 4,000 members, has been in turmoil since the Management Committee allegedly failed to provide audited financial statements from 2022 onward. This failure has prompted widespread suspicion, with members now accusing the committee of a deliberate cover-up. Former Society President O. Ateh disclosed during a press briefing in Abuja that efforts to launch an independent forensic audit have been consistently thwarted by the committee, intensifying calls for transparency and accountability.

According to Ateh, “The elected Management Committee has refused to render financial accounts since 2022. Circulating information indicates that the 2022 financial records show a staggering loss of N806 million, and rather than addressing members as required during an Annual General Meeting, the executives have been fighting among themselves and using members’ funds to resist scrutiny.”

Caretaker Committee Imposed Amid Legal Disputes

The crisis took a new turn when the Lagos State Ministry of Commerce, Cooperative, Trade, and Investment stepped in, dissolving the elected Management Committee and installing a caretaker committee — a move that many members claim violates existing cooperative laws. Members allege that the Ministry’s actions were not only illegal but also exacerbated the already fragile situation by deepening internal divisions.

The new caretaker committee, imposed by the Ministry under the direction of Mrs. Zulikah Ibrahim, reportedly changed the Society’s bank signatories immediately after taking over. According to the concerned members’ statement, they initiated several questionable transactions, including the release of N1 million to a contractor involved in a failed project and an unauthorized N180 million withdrawal for a disputed initiative.

The imposition of the caretaker committee and the subsequent changes to financial mandates have sparked legal action from the members. Court cases have been filed to challenge the Ministry’s intervention, including Suit No. LD/10771/0CMW/2024, which seeks to stop the Extraordinary General Meeting that led to the impeachment of Society President Adebusuyi. Despite obtaining a court order, members claim that the Ministry and the caretaker committee have continued to operate in defiance of judicial directives.

Members Demand Independent Audit, Transparency

The affected cooperative members insist that only a forensic audit by a globally recognized independent firm can restore trust and clarify the financial discrepancies. Although Society President Adebusuyi had initially proposed hiring one of the “Big Four” international audit firms, the members argue that such an audit must be member-driven, especially since the audit fees would come from their savings.

The statement stressed, “The Lagos State Ministry and the Management Committee cannot impose an auditor, especially considering the Ministry’s perceived bias. We are calling for an impartial investigation into the financial dealings of the Cooperative Society and the Ministry’s apparent alignment with a faction of the Management Committee.”

The members further alleged that internal conflicts and the refusal to release financial records have severely undermined the credibility of the Society’s leadership. “This impasse was orchestrated by the Management Committee to conceal financial irregularities. Now, with a caretaker committee in place, we are witnessing further unauthorized withdrawals without transparency,” the statement added.

Allegations of Government Overreach and Judicial Disregard

Members argue that the Ministry’s actions represent blatant government overreach, particularly given the multiple pending court cases that challenge both the impeachment of the Society’s President and the imposition of a caretaker committee.

Among the legal battles are:

Suit No. LD/10771/0CMW/2024 – Filed to stop the EOGM that led to the impeachment of President Adebusuyi (allegedly ignored).
Suit No. 10/11089/0CMW/2024 – Challenging the Ministry’s unilateral appointment of a caretaker committee.
Suit No. CA/LAG/PRE/ROA/CV/630MI/2034 – Appealing a contentious judgment related to contractor payments.

Despite these ongoing legal processes, members say the Ministry continues to act in defiance of court rulings, further eroding confidence in the impartiality of the oversight body.

History of Financial Scandals

This is not the first time the NNPC Staff Cooperative Society has been embroiled in controversy. According to members, a former President who served between 2011 and 2015 was previously indicted for financial misconduct following an audit and was subsequently investigated by the Economic and Financial Crimes Commission (EFCC).

“This trend of financial malfeasance must stop,” the statement declared. “The Society is supposed to serve as a safeguard for our savings — a cushion for retirement or emergency needs. But now, many of us fear that everything we’ve contributed over the years is at risk.”

Call for Urgent Government Intervention

As the financial and legal chaos deepens, members are urging the federal government and independent anti-corruption agencies to intervene. They insist that a thorough and unbiased probe is the only way to restore order and ensure that members’ life savings are not lost to alleged mismanagement and political interference.

“We are in the worst season of our lives,” members lamented. “Our life savings are being tampered with under a cloud of secrecy, and the government body that should be protecting us appears to be complicit.”

With mounting tension, continued legal uncertainty, and financial mistrust, the NNPC Staff Cooperative Multipurpose Society stands at a critical juncture. Only time will tell whether the members’ demands for transparency, accountability, and justice will be met — or whether this once-trusted institution will spiral further into disarray.