The FG is set to appoint an external auditor to verify N2.7tn in fuel subsidy claims. Learn about the process and its implications for accountability.
Plans have been made by the Federal Government, FG to engage an external auditor in verifying Nigerian National Petroleum Company Limited’s (NNPC) fuel subsidy claim of N2.7 trillion.
The Office of the Auditor-General of the Federation will be aided in determining the precise sum owed by the government through this autonomous audit.
The decision was made five months following the initial proposal presented during the April 2024 meeting of the Federation Allocation Accounts Committee (FAAC).
At first, NNPC declared an unpaid amount of N6 trillion. However, after KPMG’s audit report was released, the outstanding balance decreased to N2.7 trillion.
The audit being conducted will encompass six years, from 2015 to 2021. Its objective is twofold: to reconcile discrepancies and authenticate the subsidy claims. Despite Ali Mohammed’s consistent briefing as Director of Home Finance at the Ministry of Finance, a comprehensive scrutiny of these assertions had not been initiated until this juncture.
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Shortly after the announcement by President Bola Tinubu on May 30, 2023 of the removal of petrol subsidy, Mele Kyari – CEO of NNPC Group revealed that there was an outstanding debt owed to them amounting to N2.8 trillion for said subsidy. Despite this fact, Kyari noted that they had been using their own funds at NNPC in cover-up as reimbursement from government awaited payment indefinitely.
The minutes from a recent FAAC meeting in Abuja indicate that the procurement division at the Ministry of Finance has initiated steps to choose an external auditor.
According to the minutes, “The Director of Home Finance informed that the issue was still being dealt with by the Office of the Auditor-General of the Federation and mentioned that steps had been taken by Ministry’s Procurement Department towards hiring an external auditor.”
The meeting entailed deliberations proposing an extension of the audit duration until December 2023, and narrowing down its scope to encompass solely the period from 2021 through June 2022 when NNPC functioned as a corporation.
Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, recognized members’ contributions and expressed optimism for a speedy audit process conclusion.
