NNPC denies report of N3.3 trillion inflated subsidy claims 

The Nigerian National Petroleum Corporation Limited (NNPC) has denied reports in the media that it inflated subsidy claims by N3.3 trillion.  

The company stated this in a press statement signed by its communications officer, Olufemi Soneye where it stated that all previous subsidy claims are verifiable, and it never inflated subsidy claims to the federal government.  

It explained that it is not aware of any audit as alleged by media reports and that the company will not be drawn into the politics of fuel subsidy as it currently operates as a commercial entity under the Petroleum Industry Act (PIA) 2021.  

It stated, “NNPC Ltd. conducts its businesses accountably and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the Federal Government. All previous subsidy claims by the Company are verifiable, as relevant records and documents have been sent to relevant authorities and agencies.” 

“NNPC Ltd. is neither aware of any audit of its subsidy claims nor the probe ensuing therefrom and wishes to state categorically that both ridiculous claims are products of the febrile imagination of the reporters and their respective media houses.” 

Furthermore, it explained that in line with its Transparency, Accountability & Performance Excellence (TAPE) mantra, NNPC Ltd. has repeatedly invited external auditors to review its books. The company urges media practitioners and houses to verify information before publication to avoid misleading the public. 

Backstory 

Media reports had claimed that a forensic audit by KPMG, a global accounting firm, has uncovered a N3.3 trillion discrepancy in the fuel subsidy claims made by the Nigerian National Petroleum Company Limited (NNPCL) during former President Muhammadu Buhari’s administration. 

Recurrent subsidy issues  

Following the removal of fuel subsidy by President Bola Tinubu on assumption into office in June, there have been reports by multiple authorities that the federal government has continued to incur implicit in light of significant depreciation of the naira.  

• The former Governor of Kaduna state, Nasir El Rufai had earlier stated that the federal government has continued subsidy payments even as the Chairman of Rain Oil, Raymond Ogbechie stated that the federal government pays around N600 billion monthly on subsidy payments.  
• The International Monetary Fund (IMF) had also stated that subsidy payments on energy and electricity could cost the country up to 3% of GDP in 2024. Furthermore, the Fund stated that fuel and electricity subsidy payments would increase the country’s budget deficit in 2024.  
• Perhaps, the most obvious confirmation of a return to fuel subsidy payment was the draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the finance minister, Wale Edun, on Tuesday where it stated that fuel subsidy payments in 2024 could reach N5.4 trillion.  

However, the federal government has come out to deny the draft stating it’s a leaked report.