Nigerian National Petroleum Company Limited (NNPCL) is presently undergoing a forensic audit, according to confirmation from Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
This project is a component of larger governmental initiatives to improve accountability and transparency in important national organizations.
The government is doing a thorough reconciliation of its financial records, Edun revealed while speaking at the Nigeria Investment Forum in Washington, D.C. Increasing NNPCL’s contribution to Nigeria’s foreign exchange reserves through enhanced oil revenue generation is a key component of this effort.
The audit will provide insight into past financial transactions and elucidate the scope of NNPCL’s financial responsibilities, particularly those associated with the now-defunct fuel subsidy scheme, the finance minister emphasized.
According to Edun, “there is a NNPC audit going on regarding NNPC arrears, so that we can truly understand what has happened in the past.”
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Even though President Bola Tinubu announced the end of the fuel subsidy system on May 29, 2023, he clarified that it was gradually eliminated. During the transfer, he said, NNPCL took up a portion of the cost.
The termination of the fuel subsidy was announced on May 29, 2023, but it took some time to accomplish, thus there are currently some reconciliation operations underway. He clarified that NNPC now bears a portion of the responsibility that formerly rested on the government’s budget.
“Legitimate claims” for arrears resulting from the delay in subsidy removal have been lodged by the national oil corporation, Edun asserts. But he emphasized that a thorough analysis was necessary to verify the veracity of their assertions.
It’s a reciprocal situation. He went on to say, “A reconciliation is in progress.
In terms of the future, Edun gave the NNPCL a clear directive: to increase crude oil production and provide more revenue in dollars for the Federation Account.
“NNPC must bring to the table increased oil production, increased revenue, including dollar revenue, and increased revenue for the Federation.” They have been tasked with fulfilling that mandate. Additionally, I believe they will deliver,” he said.
