NNPC Limited’s N2.7tn Subsidy Claim Under Scrutiny: External Auditor to Verify Legitimacy
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The Federal Government has initiated plans to engage an external auditor to verify the Nigerian National Petroleum Company Limited’s (NNPC) N2.7 trillion fuel subsidy claim. This move aims to determine the actual amount owed by the government, following a previous audit by KPMG that reduced the initial claim from N6tn to N2.7tn.
According to Mele Kyari, NNPC Group Chief Executive Officer, “Since the provision of the N6tn in 2022 and N3.7tn in 2023, we have not received any payment 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.”
The selection process for an external auditor has begun, with the Procurement Department of the Ministry of Finance putting structures in place to engage an auditor to assist the Office of the Auditor-General of the Federation.
The Chairman of Commissioners’ Forum/HCF suggested extending the audit review period to December 2023, while the Permanent Secretary of Finance proposed limiting the scope to cover the period 2021 to June 2022.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, expressed optimism that the exercise would be speedily executed, ensuring transparency and accountability in the subsidy claim process.
