Government to Audit NNPC Accounts,
…World Bank projects N750/litre Fuel Price
By Patience Ikpeme
The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, has announced that the federal government plans to audit the accounts of the Nigerian National Petroleum Company Limited (NNPCL). This announcement was made during the release of the “World Bank Nigeria Development Update” in Abuja.
Mr. Edun emphasized the need for thorough scrutiny and expressed the government’s determination to ensure that revenue generated by the NNPCL and other revenue agencies directly benefits the government’s treasury.
He stated, “There will be a comprehensive review, and I am confident that the NNPCL is preparing for it. Our goal is for revenue to flow into the government’s coffers from the NNPC and all other revenue agencies.”
Mr. Edun highlighted the previous statements made by the former Ministers of Finance, Mrs. Kemi Adeosun and Mrs. Zainab Ahmed, regarding the audit of the NNPCL’s accounts. However, no public report of such an audit has been released to date.
In addressing concerns about pending salary issues, Mr. Edun affirmed the government’s commitment to implementing a new salary structure in 2024. This decision aligns with the Salaries and Wages Commission Act, which mandates salary reviews every five years. He assured that all relevant stakeholders, including labor leaders, would be actively involved in the process.
Additionally, Mr. Edun discussed the significant presence of foreign currency, particularly in the domiciliary accounts held by affluent Nigerians. The government intends to encourage investments by providing incentives for the release of funds from these accounts, without resorting to forceful measures.
Regarding the World Bank’s findings on the current fuel price, Lead Economist Alex Sienaert revealed that the price is unsustainable and does not accurately reflect the actual cost. Sienaert suggested that Nigerians should ideally be paying around N750 per liter, in contrast to the current N650 per liter.
The World Bank’s Nigeria Development Update called for greater transparency in the NNPCL’s operations, urging the corporation to disclose its financial statements and revenue flows publicly. The report stressed the importance of comprehensive information dissemination on pump prices and fiscal savings resulting from subsidy reforms.
Shubham Chaudhuri, World Bank Country Director for Nigeria, emphasized the urgent need for petrol subsidy and foreign exchange management reforms as crucial steps toward improving Nigeria’s economic outlook. Chaudhuri called for coordinated fiscal and monetary policies in the short to medium term to strengthen the country’s economic trajectory.
