By Juliet Ezeh
Finance Minister Wale Edun confirms ongoing forensic audit of NNPC and digital reforms to ensure transparency, curb leakages, and increase remittances to Nigeria’s Federation Account.
Nigeria Undertakes Forensic Audit of NNPC
The Nigerian government has initiated a forensic audit of the Nigerian National Petroleum Company Limited (NNPC) to examine deductions and charges reducing funds meant for the Federation Account. Finance Minister Wale Edun revealed the development at a press briefing in Abuja, noting that the audit aligns with a recent presidential executive order directing certain oil and gas revenues to be paid directly into the Federation Account.
“It is an ongoing forensic audit of NNPC as mandated by the Federation Account Allocation Committee,” Edun said, adding that the review focuses on ensuring accuracy and transparency in oil revenue remittances.
Direct Remittance to Federation Account
Under the new directive, three elements management fees, frontier fund, and gas flare penalties will now flow directly to the Federation Account. Edun emphasized that this step does not override ongoing legislative or institutional processes, but complements broader fiscal reforms aimed at improving accountability.
A committee of federal and state representatives has been constituted to supervise the efficient implementation of the directive. The combined effect of the executive order and the audit is expected to clarify alleged remittance backlogs and enhance federal revenue management.
Digital Reforms and Revenue Transparency
Edun highlighted that all revenue-earning agencies are migrating to a unified digital platform to block leakages and improve monitoring.
“All revenue-earning agencies should be on the same technical platform. Everybody will see how much someone is meant to pay, how much has been paid, and how much is owed,” he said.
The minister also announced the discontinuation of manual cash payments for government services starting February 20, citing modern public finance management practices.
Fiscal Responsibility and Investment Plans
The minister reaffirmed that agencies are limited in revenue retention, ensuring that surpluses flow to the government under the Fiscal Responsibility Act. Beyond oil revenues, the government is engaging private investors to explore concession or partnership arrangements in public assets such as airports, seaports, and other infrastructure.
Edun stressed the importance of long-term, job-creating investments and warned against sudden capital exits that could destabilize markets.
Social Protection Efforts Continue
The government’s direct benefit transfer programme has reached 9.1 million households, with additional payments planned to cover approximately six million more recipients. This demonstrates a parallel effort to strengthen social welfare and economic inclusion while improving revenue collection systems.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.