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HomeNewsBusinessForensic Audit Reveals NNPCL's Massive N3.3 Trillion Subsidy Fraud

Forensic Audit Reveals NNPCL’s Massive N3.3 Trillion Subsidy Fraud

In a shocking revelation, a forensic audit conducted by global accounting firm KPMG has exposed a massive discrepancy in the fuel subsidy claims made by the Nigerian National Petroleum Company Limited (NNPCL). The audit uncovered that NNPCL had inflated its subsidy claims by a staggering N3.3 trillion, as reported by iWitnessLive.

Initially, NNPCL had reported spending a total of N6 trillion on fuel subsidies, with a significant portion being paid by the government during the tenure of former President Muhammadu Buhari. However, the audit revealed that the actual amount inflated by NNPCL was an astronomical N3.3 trillion.

Mele Kyari, the Group CEO of NNPCL, claimed that the company was still owed N2.8 trillion by the federal government for the fuel subsidy payments. This revelation came just hours after President Bola Tinubu announced the elimination of fuel subsidies. Kyari stated that NNPCL had covered the subsidy payments from its own cash flow, but the government was yet to reimburse the company for this amount.

The May 2024 report further revealed that since the provision of N6 trillion in 2022 and N3.7 trillion in 2023, NNPCL had not received any payment from the Federation. Kyari emphasized the urgency of settling the outstanding N2.8 trillion owed by the federal government, as NNPCL could not sustain the subsidy regime without reimbursement.

In response to this shocking revelation, the Tinubu Government has announced plans to conduct a fresh audit of the N2.8 trillion fuel subsidy claim made by NNPC Limited. This audit, which will cover the period from 2015 to 2021, aims to verify the authenticity of NNPC’s claims. The Office of the Auditor-General for the Federation (OAuGF) will lead the audit, with the option to engage an external firm for additional support.

During a Federal Account Allocation Committee (FAAC) meeting held in March 2024, members discussed the need for an independent audit to ensure transparency and prevent conflicts of interest. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reiterated President Tinubu’s commitment to the forensic audit. Various state commissioners shared their perspectives, with a consensus emerging in favor of engaging an independent auditor to ensure a conflict-free exercise.

While there were differing opinions on the efficiency of an independent auditor, it was agreed that the OAuGF would lead the audit, with the possibility of engaging external auditors when necessary. The audit aims to resolve outstanding claims, including the reduced N2.7 trillion claim against NNPC Limited, as recommended by KPMG’s initial audit.

This development marks a significant step towards uncovering the truth behind the inflated subsidy claims and ensuring accountability in the management of Nigeria’s fuel subsidies. The outcome of the audit will be closely monitored by the public and stakeholders alike, as the nation seeks to address the financial irregularities and establish a transparent system for subsidy payments in the future.

We will continue to provide updates on this developing story as more information becomes available. Stay tuned for the latest news.

Efecha Gold
Efecha Gold
Multimedia Expert, Journalist, and Singer.


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