Audit Reveals NNPCL Inflated Subsidy Claims By N3.3Trillion, Tinubu Government To Probe Activities Of National Petroleum Company Under Buhari

Lawful hours after President Bola Tinubu’s announcement that gasoline subsidy had been eradicated, Kyari acknowledged that the federal government soundless owed NNPCL N2.8 trillion for petrol subsidy funds, which the firm had covered from its cash circulation.

A forensic audit conducted by KPMG, a international accounting agency, has uncovered a significant discrepancy in the gasoline subsidy claims made by the Nigerian National Petroleum Company Restricted (NNPCL). 

The audit revealed that NNPCL inflated its gasoline subsidy claims by a staggering N3.3 trillion, in accordance to a document done by iWitnessLive.

On the beginning, NNPCL reported spending N6 trillion on gasoline subsidy, with the government of frail President Muhammadu Buhari paying a out of the ordinary half. 

Nonetheless, NNPCL’s Team CEO, Mele Kyari, claimed that the firm was soundless owed N2.8 trillion. Lawful hours after President Bola Tinubu’s announcement that gasoline subsidy had been eradicated, Kyari acknowledged that the federal government soundless owed NNPCL N2.8 trillion for petrol subsidy funds, which the firm had covered from its cash circulation. 

The government has yet to reimburse NNPCL for this quantity, the Would possibly possibly per chance 2024 document acknowledged.

“Since the provision of the N6tn in 2022, and N3.7tn in 2023, now we possess no longer bought any payment in any respect from the Federation.

“Which draw they (the Federal Government) are unable to pay and we’ve continued to back this subsidy from the money circulation of the NNPC. We are making an try forward to them to resolve as a lot as N2.8tn of NNPC’s cash circulation from the subsidy regime and we are able to’t continue to intention this,” he acknowledged.

Meanwhile, the Nigerian Government plans to conduct a recent audit of the N2.8 trillion gasoline subsidy articulate made by NNPC Restricted, following a reconciliation by KPMG that diminished the claims to N2.7 trillion. 

The audit, which can quilt 2015-2021, objectives to substantiate the authenticity of NNPC’s claims. The Office of the Auditor-General for the Federation (OAuGF) will lead the audit, with the selection to possess interplay an exterior agency for added back. 

The decision was made all the intention in which through a Federal Fable Allocation Committee (FAAC) assembly in March 2024, where members mentioned the need for an self sustaining audit to cease conflicts of passion. 

The Minister of Finance and Coordinating Minister of the Financial system, Wale Edun, emphasised President Tinubu’s commitment to the forensic audit, whereas commissioners from various states shared their perspectives on the matter.

In step with the minutes, the Ogun Direct Commissioner for Finance urged taking part an self sustaining auditor to be obvious a battle-free exercise, benefiting all tiers of government. The Niger Direct finance commissioner supported this stance, emphasizing inclusiveness and objectivity. 

Rivers Direct, on the replace hand, famed that an self sustaining auditor doesn’t guarantee success, recommending a combined contain OAuGF and exterior companies. 

The Federal Commissioner, Income Mobilization, Allocation and Fiscal Price/Chairman, Indices and Disbursement explained that the audit objectives to solve prominent claims, including the diminished N2.7tn articulate against NNPC Restricted. 

KPMG’s preliminary audit urged additional investigation. The assembly concluded that OAuGF will lead the audit, with exterior back as mandatory.

“Contributing, the Federal Commissioner, Income Mobilization, Allocation and Fiscal Price/Chairman, Indices and Disbursement seen that the proposed audit was in respect of some prominent claims which contain the N6tn against NNPC Restricted that was due to this fact diminished to N2.7tn after preliminary reconciliation. He knowledgeable members that KPMG which implemented the sooner audit exercise of NNPC had looked at possible the most claims and urged additional audit to solve them.

“Concluding, the assembly agreed that OAuGF would be regarded as first and an exterior audit agency would be engaged when mandatory to present additional back,” the minutes be taught in segment.

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