A renowned global accounting firm, KPMG, has conducted a forensic audit revealing a notable inconsistency 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 had inflated its fuel subsidy claims by a staggering ₦3.3 trillion.

At first, NNPCL reported spending ₦6 trillion on fuel subsidy, with the former President Muhammadu Buhari’s government covering a significant portion of the expenses.

NNPCL’s Group CEO, Mele Kyari, claimed that the federal government still owed the company ₦2.8 trillion for petrol subsidy payments, a statement made shortly after President Bola Tinubu’s declaration of the subsidy’s removal.

As per the May 2024 report, the government has not yet reimbursed NNPCL for this amount.

“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,” he said.

In light of KPMG’s reconciliation, which reduced the claims to ₦2.7 trillion, the Nigerian Government intends to undertake a fresh audit of NNPC Limited’s ₦2.8 trillion fuel subsidy claim.

The audit, spanning from 2015 to 2021, seeks 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.

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.

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