Wale Edun, the minister of finance and coordinating minister of the economy, has announced that a forensic audit of the Nigerian National Petroleum Company (NNPC) Limited is in the works.
Edun made this statement on Tuesday during the Nigerian Investor Forum held alongside the International Monetary Fund (IMF) and World Bank spring meetings in Washington, DC, United States.
Speaking to investors from major global financial institutions, including J.P. Morgan, the minister outlined key reforms implemented by the federal government to reset the economy and rebuild confidence.
Edun highlighted the recent leadership changes at NNPC as part of government efforts to improve the company’s performance, particularly regarding oil production.
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When asked about NNPC’s claims for payment arrears, the minister explained that a reconciliation process is ongoing alongside the audit.
“There’s a forensic audit of NNPC underway so that we can really understand what has happened in the past. As for now, there’s a reconciliation exercise going on,” he said.
“Because the truth is, as we all know, the removal of the fuel subsidy was announced on May 29, 2023, but it took time to achieve. Part of that burden shifted from the government’s budget to NNPC. So, they have a legitimate claim, and they have some arrears that need to be given to them.
“But then it’s a two-sided thing. There’s a reconciliation underway. And the most important thing is that NNPC needs to come to the table with more oil production, more dollar revenue, and indeed, more revenue to the federation. That’s the mandate they have been given, and I think they will deliver.”
This announcement comes as stakeholders have called for a thorough examination of NNPC’s operations under its former group chief executive officer, Mele Kyari. Critics have expressed concerns about NNPC’s oil deals lacking transparency.
The Nigeria Extractive Industries Transparency Initiative (NEITI) reported in September 2023 that NNPC failed to remit $2 billion in taxes to the federal government before becoming a commercial entity, though NNPC has denied this allegation.
In December 2024, government auditors investigated NNPC’s N2.7 trillion subsidy refund claim, and in January, the auditor-general’s report identified financial irregularities at NNPC.
On April 2, President Bola Tinubu restructured NNPC’s leadership, appointing Bayo Ojulari as the new group chief executive officer to replace Kyari and Ahmadu Musa Kida as non-executive chairman.
The new NNPC leadership plans to attract $60 billion in investments by 2030 and aims to increase crude oil production to over two million barrels per day by 2027, with a target of three million barrels daily by 2030.
