The Office of the Auditor-General of the Federation (OAuGF) is probing the N2.7 trillion fuel subsidy claim by the Nigerian National Petroleum Company (NNPC) Limited.
Documents necessary for the verification have already been obtained.
This is just as the procurement department of the finance ministry obtained the terms of reference and the scope of work to guide the process of hiring the external firm to support the OauGF, according to a report by The PUNCH.
In April 2024, the federal government began a fresh audit of the N2.8 trillion fuel subsidy claim by the NNPCL.
An audit firm, KPMG, had conducted an initial audit, reducing the claims from N6 trillion to N2.7 trillion.
The audit was expected to span from 2015 to 2021.
On May 30, 2023, a few hours after the “subsidy is gone” declaration by President Bola Tinubu, NNPCL’s Group Chief Executive Officer, Mele Kyari, told State House correspondents that the Federal Government still owed the firm the sum of N2.8 trillion spent on petrol subsidy.
While saying the NNPC footed petrol subsidy bills from its cash flow, Kyari said the government had so far been unable to pay back the N2.8 trillion.
Providing an update in the minutes of the Federal Allocation Accounts Committee (FAAC) meeting for September 2024, the Director of Home Finance, Ali Mohammed, said the exercise would be judiciously carried out.
A section of the minutes with the heading ‘Update on the Forensic Audit Covering the Period 2015 to 2022 to Authenticate NNPC/Federation Claims in Respect of N2.7tn withheld by NNPC Limited’, stated that documents had been provided to conduct the task.
The minutes read, “The Director, Home Finance reported that the Office of the Auditor-General for the Federation was provided with the documents requested for conducting the assignment.
“He also reported that the Procurement Department of the Ministry had been given the Terms of Reference and the Scope of work to guide the process of hiring the External Firm that would support OAuGF in conducting the assignment.
“Contributing, the Chairman disclosed that he had engaged with the Auditor-General for the Federation on the matter, and there was a commitment by the OAuGF to diligently conduct the assignment with the support of the External Audit Firm as proposed. He assured that the Ministry will continue to follow up with OAuGF to ensure the successful conduct of the assignment.”
The director further asked that the topic be expunged from its discussions pending any future update.
“Based on that, he suggested and the meeting agreed that the matter be temporarily removed from the Matters Arising pending any future update,” he stated.
Experts monitoring the situation had expressed concerns about the probe following the exit of the former NNPCL CFO, Ajiya Umar, but the NNPCL spokesperson, Olufemi Soneye, dismissed the notion, stressing that the process is ongoing.
Soneye in a chat with The PUNCH, said, “I can confirm that reconciliation is currently ongoing with the relevant government agencies and auditors. Once the process is completed, the public will be informed appropriately.”
Meanwhile, revenue-generating agencies have refunded a total sum of N1.19tn 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 agencies are NNPCL, the Nigerian Upstream Petroleum Regulatory Commission, and the Federal Inland Revenue Service.
