The Office of the Auditor-General of the Federation has received all necessary documents to verify the N2.7 trillion fuel subsidy claim by the Nigerian National Petroleum Company Limited (NNPCL) against the government.
This development is a significant step towards resolving the long-standing issue.
The verification process is part of a fresh audit commenced by the Federal Government in April 2024, covering the period from 2015 to 2021.
An initial audit by KPMG had reduced the claims from N6 trillion to N2.7 trillion. The NNPCL had claimed that the Federal Government owed the firm N2.8 trillion spent on petrol subsidy.
According to the Director of Home Finance, Ali Mohammed, the exercise would be judiciously carried out. The procurement department of the finance ministry has obtained the terms of reference and the scope of work to guide the process of hiring an external firm to support the OAuGF.
The NNPCL’s Group Chief Executive Officer, Mele Kyari, had stated that the Federal Government still owed the firm N2.8 trillion spent on petrol subsidy. Kyari noted that the government had been unable to pay back the amount despite provisions made in 2022 and 2023.
Experts have expressed concerns about the probe, but the NNPCL spokesperson, Femi Soneye, dismissed the notion, stressing that the process is ongoing. Soneye confirmed that reconciliation is currently ongoing with the relevant government agencies and auditors.
Meanwhile, revenue-generating agencies have refunded a total sum of N1.19 trillion as arrears reconciled to the federation account in the first seven months of 2024. This followed the reconciliation of unresolved revenue disbursement into the federation account.
The development is seen as a positive step towards resolving the fuel subsidy claim and promoting transparency in the oil and gas sector. The outcome of the verification process is expected to provide clarity on the claim and its implications for the government and the NNPCL.
