The Federal Government plans to conduct a new audit of the Nigerian National Petroleum Company Limited’s N2.8 trillion gasoline subsidy claim.
KPMG, an audit company, conducted an initial audit, which reduced the claims from N6 trillion to N2.7 trillion.
The Federal Government is also contemplating hiring an external audit firm or instructing the Office of the Auditor General of the Federation to check the corporation’s statements about how much the government owes the oil business.
According to reports, the minutes from the March 2024 Federal Account Allocation Committee meeting, disclosed the most recent proposal.
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On May 30, 2023, a few hours after President Bola Tinubu’s “subsidy is gone” remark, NNPCL Group CEO Mele Kyari informed State House journalists that the federal government still owed the corporation N2.8 trillion in fuel subsidies.
While claiming that the NNPCL paid for petrol subsidies out of its own cash flow, Kyari stated that the government had yet to repay the N2.8 trillion.
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.”
He said that the audit will take place from 2015 to 2021, with the goal of verifying the legitimacy of NNPC/Federation Account claims totalling N2.7 trillion.
Edun further requested that the OAuGF be given preference for the new audit above any other external audit due to their auditing competence.
However, Minister of Finance and Committee Chairman Wale Edun declared during the FAAC meeting that Tinubu was determined to see to it that the NNPC Limited forensic audit was carried out and the findings examined.
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.”
cc: Punch Ng
