Federal Government Set to Engage External Auditor to Verify N2.7tn Fuel Subsidy Claim

The Nigerian Federal Government has reportedly finalized plans to engage an external auditor to verify the N2.7 trillion fuel subsidy claim by the Nigerian National Petroleum Company Limited (NNPCL) against the government.

Recall that the NNPCL had initially claimed an outstanding of N6 trillion subsidy payment, but this was reduced to N2.7 trillion after an initial audit by an audit firm, KPMG. According to a report by The Punch, the yet-to-be-named auditor will assist the Office of the Auditor-General of the Federation in determining the real amount owed by the government.

The report revealed that the audit will span from 2015 to 2021. A copy of the minutes of the recent Federation Allocation Accounts Committee (FAAC) meeting obtained by the newspaper on Tuesday in Abuja revealed that a selection process for an external auditor by the procurement department of the finance ministry has begun.

The minute read: "On the forensic audit covering the period 2015 to 2021 to Authenticate NNPC/Federation Claims in Respect of N2.7 trillion withheld by NNPC Limited: The Director of Home Finance reported that the Office of the Auditor-General of the Federation was still working on the matter, adding that the Procurement Department of the Ministry had also put structures in place for the engagement of an external auditor, who would assist OAuGF to carry out the assignment."

This development comes five months after the plan was proposed at the monthly FAAC meeting in April 2024.

The Federal Government’s decision to engage an external auditor is a significant step towards transparency and accountability in the management of the country’s finances. The audit is expected to provide a clearer picture of the actual amount owed by the government to the NNPCL, and ensure that the funds are used for the intended purpose.