The Federal Government has commenced a detailed investigation into the financial operations of the Nigerian National Petroleum Company Limited (NNPC) as part of a drive to improve transparency and ensure all oil and gas revenues reach the Federation Account.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced on Friday in Abuja that a forensic audit of NNPC is currently underway. The audit aims to examine deductions and charges that reduce the share of revenue flowing to the Federal Government, states, and local governments.
“The ongoing review is focused on understanding what revenues are meant for the Federation Account and what might be going elsewhere,” Edun said. He added that this process coincides with a recent presidential executive order requiring specific oil and gas revenues such as management fees, frontier fund contributions, and gas flare penalties to be paid directly into the Federation Account.
Edun clarified that the directive does not interfere with existing legislative or institutional oversight. A committee made up of federal and state representatives has been set up to ensure the smooth implementation of the new order, with its first meeting scheduled for next week.
Highlighting the broader goals of fiscal reform, the minister said Nigeria must increase domestic resource mobilization to offset limited fiscal space and high global interest rates. He stressed that reliance on unsustainable debt limits government spending on critical areas like health, education, and infrastructure.
In a push for transparency, Edun revealed that all revenue-collecting agencies have been instructed to migrate to a unified digital platform. This system will provide real-time tracking of payments, helping to prevent revenue leakages. He also noted that cash payments for government services were discontinued from February 20 to modernize public finance management.
Regarding revenue collection by government agencies, Edun emphasized that under the Fiscal Responsibility Act, agencies can retain only a portion of collected funds, with the surplus remitted to the government.
Beyond oil revenue, the minister said the government is engaging private equity investors over capital gains tax concerns to prevent sudden capital flight that could destabilize markets. He also opened the door for private investors interested in public assets like airports and seaports through concession or partnership arrangements.
On social welfare, Edun reported that about 9.1 million households have received at least one payment through the direct benefit transfer program, with an additional six million households set to benefit as the current phase concludes.
This audit and the executive directive mark a major step by the Federal Government to ensure accountability and transparency in Nigeria’s oil and gas sector.
