N3.3 Trillion Overstatement In NNPCL Fuel Subsidy Claims During Buhari Administration Revealed

Date:

A forensic audit by KPMG, an international accounting firm, has uncovered a significant overstatement of N3.3 Trillion in the fuel subsidy claims made by the Nigerian National Petroleum Company Limited (NNPCL) under former President Muhammadu Buhari’s administration.

 

The audit revealed that NNPCL initially reported N6 Trillion in fuel subsidy claims. However, a substantial portion of this amount was paid by the government, despite the inflated figures.

 

NNPCL’s Group CEO, Mele Kyari, has stated that the company is still awaiting reimbursement of N2.8 Trillion from the Federal Government. Kyari explained that NNPCL has been funding the subsidy from its own cash flow while waiting for the government to settle the outstanding amount.

 

Kyari made these remarks shortly after President Bola Tinubu announced the removal of the fuel subsidy. This decision has significant implications for the ongoing financial operations of NNPCL.

 

In light of the findings from the KPMG audit, the Nigerian Government has decided to conduct a new audit of the N2.8 Trillion fuel subsidy claim. This move aims to ensure transparency and accountability in the subsidy regime.

 

The new audit will be led by the Office of the Auditor-General for the Federation (OAuGF). To maintain impartiality and prevent any conflict of interest, the OAuGF may engage an external firm for additional support.

 

The decision to conduct this fresh audit was made during a meeting of the Federal Account Allocation Committee (FAAC) in March 2024. The committee members emphasised the need for an independent audit to verify the legitimacy of NNPCL’s claims.

 

The period covered by the KPMG audit spans from 2015 to 2021. During these years, the audit sought to reconcile the reported figures with actual disbursements and consumption.

 

The discrepancies found in the audit highlight the challenges in managing fuel subsidies in Nigeria. The inflated claims point to potential issues of mismanagement or fraud within NNPCL.

 

President Tinubu’s announcement to remove the fuel subsidy marks a significant policy shift. This move is expected to have wide-reaching economic and social impacts across the country.

 

The Government’s commitment to a fresh audit underscores its dedication to financial accountability. It also signals an effort to restore public trust in the management of national resources.

 

Moving forward, the outcomes of the new audit will be crucial in shaping future policies regarding fuel subsidies in Nigeria. The findings will likely influence how the government manages such subsidies and addresses any uncovered financial irregularities.

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Nigeria Introduces TELA Maize Amid Concerns Raised Over Genetically Modified Crops

The Nigerian Government recently introduced a new genetically modified...

Put Tobacco-Style Warnings On Social Media: US Surgeon General

US Surgeon General Dr. Vivek Murthy is urging Congress...

Shocking Report of Potential Juror Misconduct in Trump Trial

As US Presidential candidate Donald Trump’s trial and conviction...

G7 Plans $50 Billion Loan for Ukraine from Frozen Russian Assets

Leaders of the Group of Seven wealthy democracies (G7)...