Nigeria’s Federal Government Initiates External Audit of NNPC’s N2.7tn Subsidy Claim
The Federal Government has taken a significant step towards verifying the Nigerian National Petroleum Company Limited’s (NNPC) N2.7tn fuel subsidy claim by initiating the selection process for an external auditor. This move aims to determine the authenticity of the claim and ensure transparency in the subsidy payment process.
The external auditor will assist the Office of the Auditor-General of the Federation (OAuGF) in conducting a forensic audit of the NNPC’s subsidy claims, covering the period from 2015 to 2021. The audit will help to verify the N2.7tn withheld by NNPC Limited and ensure that the government’s subsidy payments are accurate and legitimate.
The development comes five months after the plan was proposed at the Federation Allocation Accounts Committee (FAAC) meeting in April 2024. The NNPC had initially claimed an outstanding of N6tn, which was reduced to N2.7tn after an initial audit by KPMG.
The selection process for the external auditor is currently underway, with the Procurement Department of the Ministry of Finance handling the process. The audit is expected to be completed speedily, with the Minister of Finance expressing optimism about the exercise.
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