The Federal Government is set to begin a comprehensive audit of the N2.8 trillion fuel subsidy claim by the Nigerian National Petroleum Company Limited (NNPCL).
An initial audit conducted by KPMG had already slashed the claims from N6 trillion to N2.7 trillion. However, the government aims to go deeper into the matter to ensure accuracy and accountability.
The plan for the fresh audit was disclosed during the Federal Account Allocation Committee meeting held in March 2024.
According to the minutes obtained, there’s contemplation over engaging either an external audit firm or directing the Office of the Auditor General of the Federation (OAuGF) to verify the claims made by the corporation.
The issue of fuel subsidy payments has been a topic of contention, especially since President Bola Tinubu’s declaration of the subsidy’s removal in May 2023. Despite this, the NNPCL Group CEO, Mele Kyari, stated that the government still owes the firm N2.8 trillion spent on petrol subsidy.
He said “Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not have not received any payment whatsoever from the Federation.
“That means they (the Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. We are waiting for them to settle up to N2.8tn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this.”
During the FAAC meeting, Minister of Finance, Wale Edun, emphasized Tinubu’s commitment to ensuring a thorough forensic audit of NNPC Limited from 2015 to 2021. This audit aims to verify the authenticity of NNPC/Federation Account claims regarding the N2.7 trillion.
Edun proposed considering the expertise of the OAuGF for the audit before any external firm. He suggested that if external support becomes necessary, an independent firm could be engaged accordingly.
The minutes read in part, “The Chairman informed the members of Mr President’s commitment to ensuring that the forensic audit of NNPC Limited was conducted. He, however, proposed that since the Office of the Auditor-General for the Federation had expertise in the areas of auditing, the Office would be considered first before any other external audit firm. He added that where external support would be required, an independent firm could be engaged, accordingly.”