Forensic Audit of NNPC Underway as FG Moves to Boost Federation Account Remittances

The Federal Government has commenced a forensic audit of the Nigerian National Petroleum Company Limited (NNPC) as part of renewed efforts to scrutinise oil revenue deductions and enhance remittances into the Federation Account.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Friday during a press conference in Abuja, where he briefed stakeholders on recent economic developments.

According to the minister, the audit was mandated by the Federation Account Allocation Committee (FAAC) and is currently in progress.

“It is an ongoing forensic audit of NNPC as mandated by the Federation Account Allocation Committee meeting. That is ongoing,” Edun said.

Executive Order to Redirect Oil Revenues
Edun explained that the forensic review is being conducted alongside the implementation of a new presidential executive order directing that specific oil and gas revenues be paid directly into the Federation Account.

He noted that the review focuses on deductions and charges that diminish the amounts eventually accruing to the Federal Government, states and local governments.

The minister recalled that the Federal Executive Council (FEC) had earlier set up a subcommittee to examine deductions from the Federation Account, particularly the costs of collection and associated charges.

“It’s within that context of looking at what should come into the Federation Account and what was going elsewhere that we have now been directed by Mr President, as owner of the executive order, to immediately flow these three elements management fee, frontier fund, as well as the gas flare penalty  directly to the Federation Account,” he said.

Edun emphasised that the directive does not override any ongoing legislative or institutional processes.

“It does not prejudice anything else that is ongoing, whether at the National Assembly or the legislature or any other action that is looking at this all-important area of the Federation Account the accuracy, the transparency, and the accountability of the funds that are going to flow into it,” he added.

Federal–State Committee to Oversee Implementation
To ensure effective implementation, the minister disclosed that a joint committee comprising representatives of the Federal Government and the states has been constituted and is scheduled to meet next week.

He expressed optimism that the combined impact of the executive order and the forensic audit would finally clarify long-standing concerns over alleged remittance backlogs.

Push for Domestic Resource Mobilisation
Linking the development to broader fiscal reforms, Edun stressed the need for Nigeria to intensify domestic resource mobilisation, particularly in the face of elevated global interest rates and shrinking fiscal space.

“Within that context, there is a need to focus on domestic resource mobilisation, rather than debt financing that is not self-paid,” he warned, noting that heavy debt servicing obligations continue to crowd out critical investments in health, education and infrastructure.

On revenue transparency, the minister said the government is deploying technology across ministries, departments and agencies to plug leakages and strengthen accountability mechanisms.

The forensic audit and new revenue directives, he said, are part of a broader commitment to ensuring greater transparency, accuracy and accountability in the management of Nigeria’s oil revenues.