Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has confirmed that a forensic audit of the Nigerian National Petroleum Company Limited (NNPC) is currently underway. This review, mandated by the Federation Account Allocation Committee (FAAC), aims to scrutinise deductions and charges impacting oil revenue remittances to the Federation Account.
The audit is running concurrently with the implementation of a new presidential executive order, which directs the direct payment of specific oil and gas revenues—including management fees, frontier exploration fund contributions, and gas flare penalties—into the Federation Account. Edun explained that the combined exercise seeks to clarify long-standing concerns over alleged remittance backlogs by examining what revenues should accrue to the federal, state, and local governments versus what is deducted elsewhere.
He emphasised that the executive order supplements, rather than supersedes, existing legislative or institutional processes, including ongoing reviews by the National Assembly. A committee comprising federal and state representatives has been formed to oversee the directive’s implementation and is scheduled to convene next week.
As part of broader fiscal reforms, the minister highlighted a major shift in revenue collection. All revenue-earning agencies will migrate to a unified digital platform to enhance transparency and block leakages. This system will allow public monitoring of payment obligations and receipts. Furthermore, cash payments for government services will be discontinued from February 20, as manual handling is deemed incompatible with modern public finance management.
Under existing financial regulations and the Fiscal Responsibility Act, Edun noted that agencies like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are permitted to retain a maximum of 50 per cent of collected revenues, with surplus funds transferred to the government. This rule seeks to prevent excessive retention.
Beyond oil, the government is engaging private equity investors to address concerns around capital gains tax application. Edun warned that abrupt capital exits could destabilise markets, underscoring the preference for long-term, job-creating investments. He also stated that all revenue-generating public assets, including airports and seaports, remain open to concession or partnership proposals from serious investors.
On social protection, the minister reported that 9.1 million households have benefited at least once from the direct benefit transfer programme, with one million more set for payment and an additional five million to be included before the current phase concludes.
These measures are framed within a push for intensified domestic resource mobilisation, reducing reliance on debt financing amid high global interest rates and constrained fiscal space. The forensic audit and associated reforms are positioned as critical steps toward ensuring accuracy, transparency, and accountability in the flow of funds into the Federation Account, which distributes revenue to all tiers of government.
