The Federal Government is initiating a fresh audit of the N2.7tn fuel subsidy claim by the Nigerian National Petroleum Company Limited (NNPC). An initial audit by KPMG reduced the claims from N6tn to N2.7tn.
Considerations are underway to engage either an external audit firm or direct the Office of the Auditor General of the Federation (OAuGF) to verify the claims made by NNPC regarding the government’s debt to the oil firm.
During the Federal Account Allocation Committee meeting in March 2024, Minister of Finance and Committee Chairman, Wale Edun, revealed plans for a forensic audit of NNPC Limited spanning from 2015 to 2021 to authenticate the N2.7tn claims.
The proposal favored engaging OAuGF first, citing their auditing expertise. However, some commissioners argued for an independent auditor to mitigate conflicts of interest. Ultimately, a consensus was reached to prioritize OAuGF with the option to engage an external audit firm when necessary.
Meanwhile, concerns were raised over alleged utilization of multiple exchange rates by federal government agencies, affecting revenue remittance into the Federation Account. NNPC Limited was accused of applying three different rates for revenue conversion, resulting in a significant exchange rate differential of about N2.83tn from August 2023 to February 2024.
Efforts to reach NNPC Ltd.’s Chief Corporate Communications Officer for comments were unsuccessful at the time of reporting.
Additionally, Delta State’s Commissioner of Finance highlighted the need for a single exchange rate applicable across the board to streamline revenue conversion processes and ensure transparency.
