Tinubu Administration Subsidy Removal
EKO HOT BLOG reports that a forensic audit conducted by the global accounting firm KPMG has revealed significant discrepancies in the fuel subsidy claims filed by the Nigerian National Petroleum Company Limited (NNPCL).
According to a report from iWitnessLive, the audit uncovered that NNPCL inflated its fuel subsidy claims by an astounding ₦3.3 trillion.
Initially, NNPCL reported spending ₦6 trillion on fuel subsidies, with the former President Muhammadu Buhari’s administration covering a substantial portion of these expenses.
NNPCL’s Group CEO, Mele Kyari, asserted that the federal government still owed the company ₦2.8 trillion for petrol subsidy payments, a statement made shortly after President Bola Tinubu’s announcement of the subsidy’s removal.
The May 2024 report indicated that the government had yet to reimburse NNPCL for this amount. Kyari noted, “Since the provision of the ₦6tn in 2022, and ₦3.7tn in 2023, we have not received any payment whatsoever from the Federation.
That means they (the Federal Government) are unable to pay, and we’ve continued to support this subsidy from the cash flow of the NNPC. We are waiting for them to settle up to ₦2.8tn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this.”
Following KPMG’s reconciliation, which reduced the claims to ₦2.7 trillion, the Nigerian Government plans to conduct a fresh audit of NNPC Limited’s ₦2.8 trillion fuel subsidy claim. This new audit, covering the period from 2015 to 2021, aims to authenticate NNPC’s claims.
The Office of the Auditor-General for the Federation (OAuGF) will spearhead the audit, with the possibility of enlisting an external firm for supplementary assistance.
Fuel Subsidy Claims
The resolution was reached at a Federal Account Allocation Committee (FAAC) session in March 2024, where participants deliberated on the necessity of an impartial audit to mitigate conflicts of interest.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reiterated President Tinubu’s commitment to the forensic audit.
KPMG’s initial audit prompted the need for further investigation.
“From the Tinubu’s Alliance for Democracy were Bola Tinubu, Chief Segun Osoba, Chief Adebayo Adefarati, and Chief Bisi Akande, among others,” the statement noted.
Click below to watch our video of the week:
PoS operators in Nigeria raised fees due to a new ₦50 levy. The ₦50 levy…
In a groundbreaking move for prospective car owners, Stanbic IBTC Bank has partnered with CIG…
Dangote Refinery reduces PMS price to N899.50 per litre. Price cut aims to ease transport…