The Federal Government has initiated a new audit of the N2.7 trillion fuel subsidy claim submitted by the Nigerian National Petroleum Company Limited (NNPC). This move follows an initial audit conducted by KPMG, which reduced the subsidy claims from N6 trillion to N2.7 trillion.<\/p>\n
The new audit will be conducted by the Office of the Auditor General of the Federation, tasked with verifying the claims made by NNPC regarding the amount the government owes the corporation. This process was confirmed by the Director of Home Finance, Ali Mohammed, during the April 2024 Federal Account Allocation Committee (FAAC) meeting. An update on the audit is expected to be provided during the May FAAC meeting.<\/p>\n
The need for the audit arises from a declaration made on May 30, 2023, shortly after President Bola Tinubu announced the removal of the fuel subsidy. NNPC’s Group Chief Executive Officer, Mele Kyari, stated that the federal government still owes the company N2.8 trillion for petrol subsidies. Kyari explained that NNPC had been covering the cost of the subsidy from its cash flow, as the government had not made any payments from the N6 trillion provision in 2022 and the N3.7 trillion provision in 2023.<\/p>\n
Kyari emphasized the unsustainable nature of this arrangement, stating, “Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not received any payment whatsoever from the Federation. That means they (the Federal Government) are unable to pay and we\u2019ve continued to support this subsidy from the cash flow of the NNPC. We are waiting for them to settle up to N2.8tn of NNPC\u2019s cash flow from the subsidy regime and we can\u2019t continue to build this.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The Federal Government has initiated a new audit of the N2.7 trillion fuel subsidy claim submitted by the Nigerian National Petroleum Company Limited (NNPC). This move follows an initial audit conducted by KPMG, which reduced the subsidy claims from N6 trillion to N2.7 trillion. The new audit will be conducted by the Office of the […]<\/p>\n","protected":false},"author":2,"featured_media":28674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[59],"class_list":["post-35627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-featured"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/35627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=35627"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/35627\/revisions"}],"predecessor-version":[{"id":35628,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/35627\/revisions\/35628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/28674"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=35627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=35627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=35627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}