The Minister of Finance and coordinating minister of the Economy, Wale Edun, has said that a forensic audit of the Nigerian National Petroleum Company Limited (NNPCL) was ongoing as part of measures to boost transparency in the system.
Edun, while speaking at the Nigeira Investment Forum in Washington DC, said the federal government was working to reconcile its account books, adding that the oil company is expected to generate more foreing exchange revenue for the government purse.
Stating that the audit was aimed at providing clarity on past transactions and understanding the extent of financial commitments involving the national oil company, particularly in relation to the fuel subsidy regime, the Minister said: “on NNPC arrears….there is an NNPC audit underway, so that we can really understand what has happened in the past.
“There’s some reconciliation exercises going on because as we all know, the removal of the fuel subsidy was announced on May 29, 2023, but it took time to achieve it. In the meantime, part of that burden shifted from the government’s budget to NNPC.”
Stating that NNPC has made a “legitimate claims” for arrears owed to it due to the delayed implementation of the fuel subsidy removal, he said a thorough reconciliation must be completed to verify the claims.
“It’s a two-sided thing. There’s a reconciliation underway,” he said, adding that the most critical task ahead for NNPCL was to ramp up crude oil production and contribute more revenue—in Dollars—to the Federation Account.
“NNPC needs to come to the table with more oil production, more revenue—dollar revenue—and indeed, more revenue to the Federation. That’s the task and mandate they have been given. And I think they will deliver,” Edun stated.
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