Announced during the recent Federal Account Allocation Committee meeting, the Nigerian federal government is set to conduct a fresh audit of the N2.8 trillion fuel subsidy claim by the Nigerian National Petroleum Company Limited.
Following an initial audit by KPMG that reduced the claims from N6 trillion to N2.7 trillion, the government is now contemplating engaging an external audit firm or directing the Office of the Auditor General of the Federation to validate the claims made by the corporation regarding the government’s indebtedness.
It is noteworthy that after President Bola Tinubu’s declaration that “subsidy is gone” on May 30, 2023, Mele Kyari, the Group Chief Executive Officer of NNPCL, stated that the federal government still owes the company N2.8 trillion for petrol subsidy expenditures.
During the FAAC meeting, Minister of Finance and Committee Chairman, Wale Edun, provided an update on the issue, affirming Tinubu’s dedication to conducting a forensic audit of NNPC Limited and analyzing the results.
Edun suggested that the Office of the Auditor-General for the Federation, given its auditing expertise, should be the primary entity considered before engaging any external audit firm. However, if external support is necessary, an independent firm may be brought in accordingly.