A forensic audit of the Nigerian National Petroleum Company Limited (NNPCL) is presently underway, according to confirmation from Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
The federal government’s larger efforts to improve accountability and transparency in important national institutions include this initiative.
Speaking in Washington, D.C., at the Nigeria Investment Forum, Edun revealed that the government is conducting a thorough reconciliation of its financial records. The main goal of this exercise is to make sure that NNPCL generates more oil revenue and thereby contributes more to Nigeria’s foreign exchange reserves.
The finance minister emphasized that the audit would reveal the scope of NNPCL’s financial commitments, particularly those related to the now-defunct fuel subsidy program, and throw light on past financial transactions.
“An NNPC audit is in progress regarding NNPC arrears, so that we can truly comprehend what has transpired in the past,” Edun said.
He clarified that while President Bola Tinubu announced the end of the fuel subsidy system on May 29, 2023, the removal process actually took time. “NNPCL took on a portion of the financial burden during the transition,” he said.
“Reconciliation efforts are underway because, as everyone is aware, the fuel subsidy removal was announced on May 29, 2023, but it took some time to actually happen. Meanwhile, NNPC took up a portion of that responsibility from the government’s budget,” he clarified.
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The national oil corporation has filed “legitimate claims” for arrears resulting from the delay in the elimination of subsidies, Edun argues. He did, however, stress that a thorough analysis was required to verify the veracity of those assertions.
“There are two sides to it. He continued, “A reconciliation is under progress.
With an eye toward the future, Edun laid out a clear directive for the NNPCL: to increase crude oil production and produce more Federation Account revenue in dollars.
“NNPC must bring greater oil output, more money, more dollars, and more revenue to the Federation to the table. They have been tasked with carrying out that mandate. And I believe that they will deliver,” he said.
