Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has confirmed that a forensic audit of the Nigerian National Petroleum Company Limited (NNPC) is ongoing to scrutinise oil revenue deductions and improve remittances into the Federation Account.
Speaking at a press briefing in Abuja on Friday, Edun explained that the audit was mandated by the Federation Account Allocation Committee (FAAC) and is running alongside a new presidential executive order directing that certain oil and gas revenues—including management fees, frontier exploration funds, and gas flare penalties—be paid directly into the Federation Account.
“It is an ongoing forensic audit of NNPC as mandated by the Federation Account Allocation Committee meeting. That is ongoing,” Edun said.
Edun stressed that the directive does not override legislative processes but complements broader fiscal reforms aimed at transparency and accountability. A committee of federal and state representatives has been set up to oversee implementation.
He linked the audit and executive order to efforts to resolve long-standing concerns about remittance backlogs, noting that Nigeria must intensify domestic resource mobilisation amid rising global interest rates and limited fiscal space.
The minister revealed that all revenue-earning agencies will migrate to a unified digital platform to block leakages and ensure transparency. Cash payments for government services will be discontinued from February 20, with transactions moving fully to electronic systems.
Edun also addressed concerns about agencies’ cost of collection, reminding that under financial regulations and the Fiscal Responsibility Act, agencies can only retain up to 50% of revenue collected, with the surplus remitted to government coffers.
Beyond oil revenue, Edun said the government is engaging private equity investors on the application of capital gains tax, warning that sudden capital exits could destabilise markets. He emphasised the preference for long-term, job-creating investments and noted that no public asset is off limits for concession or partnership proposals, including airports and seaports.
Edun disclosed that 9.1 million households have benefited from direct benefit transfers, with another one million set to be paid and five million more to be covered before the current phase concludes.
