The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has confirmed that the Nigerian National Petroleum Company Limited (NNPCL) is currently undergoing a forensic audit.
This initiative forms part of broader efforts by the federal government to enhance transparency and accountability within key national institutions.
Speaking at the Nigeria Investment Forum in Washington, D.C., Edun disclosed that the government is undertaking a rigorous reconciliation of its financial records. Central to this exercise is ensuring that NNPCL increases its contribution to Nigeria’s foreign exchange reserves through improved oil revenue generation.
The finance minister stressed that the audit would shed light on historical financial transactions and clarify the extent of NNPCL’s financial obligations—especially those linked to the now-abolished fuel subsidy program.
“On NNPC arrears… there is an NNPC audit underway, so that we can really understand what has happened in the past,” Edun stated.
He explained that although President Bola Tinubu declared an end to the fuel subsidy regime on May 29, 2023, its actual removal was gradual. During the transition, he noted, NNPCL assumed part of the financial burden.
“There’s some reconciliation exercises going on because as we all know, the removal of the fuel subsidy was announced on May 29, 2023, but it took time to achieve it. In the meantime, part of that burden shifted from the government’s budget to NNPC,” he explained.
According to Edun, the national oil company has submitted “legitimate claims” for arrears resulting from the subsidy removal delay. However, he emphasised the need for a comprehensive review to confirm the accuracy of those claims.
“It’s a two-sided thing. There’s a reconciliation underway,” he added.
Looking ahead, Edun outlined a clear mandate for the NNPCL: to ramp up crude oil production and generate more dollar-denominated income for the Federation Account.
“NNPC needs to come to the table with more oil production, more revenue—dollar revenue—and indeed, more revenue to the Federation. That’s the task and mandate they have been given. And I think they will deliver,” he stated.