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Tinubu’s Govt Begins Probe Of NNPC’s N2.7 trillion Fuel Subsidy Claims

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The Bola Tinubu-led government has launched a comprehensive audit of the Nigerian National Petroleum Company Limited’s (NNPCL) N2.7 trillion fuel subsidy claims.

This follows an initial audit by KPMG, which reduced the claims from N6 trillion to N2.7 trillion.

The current audit, approved by the government, is being conducted by the Office of the Auditor General of the Federation to verify the accuracy of the claims made by NNPCL.

Ali Mohammed, Director of Home Finance, confirmed the audit process during the April 2024 Federal Account Allocation Committee (FAAC) meeting, with updates expected in the upcoming May meeting.

He said the audit will cover the period from 2015 to 2021 to ensure the legitimacy of NNPCL’s claims.

On May 30, 2023, NNPCL’s Group Chief Executive Officer, Mele Kyari, revealed that the federal government owes the company N2.8 trillion for fuel subsidies, which NNPCL had been covering from its cash flow due to the government’s inability to repay.

The statement came shortly after President Bola Tinubu’s declaration that the fuel subsidy is no longer sustainable.

FAAC meeting minutes indicate progress in the audit, with further updates anticipated.

Committee members had expressed concerns over NNPCL’s refusal to comply with the revised exchange rate of N693.50/$1, as directed by the Central Bank of Nigeria (CBN), for converting federation revenue.

The committee warned that if NNPCL continues to ignore the revised rate without proper authorization, it will take necessary actions to recover the funds owed to the Federation Account.

The revised exchange rate has significant financial implications, with NNPCL needing to refund N16.83 billion to the Federation Account due to the rate change.

The sub-committee reported a discrepancy of approximately N938 billion for the period from June to December 2023, compared to NNPCL’s claim of N1.68 trillion.

FAAC emphasized the need for NNPCL to provide authorization for using a weighted average exchange rate on PMS dollar payments and proposed that if a resolution is not reached by next month, NNPCL should refund the disputed amount.

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How Tinubu Caused Tax Reform Pushbacks — Sowunmi

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A chieftain of the Peoples Democratic Party (PDP), Segun Sowunmi, says President Bola Tinubu is responsible for the stiff opposition that has greeted the tax bills introduced by his administration.

Sowunmi, who was a guest on Channels Television’s Sunday Politics, faulted Tinubu of the All Progressives Congress (APC) for appointing his tribesmen as finance minister, revenue boss, governor of the Central Bank of Nigeria (CBN) and tax reform chair.

The PDP chieftain said that though the tax bills were good, the President created distrust among northerners by allegedly excluding their kinsmen from his economic and tax teams.

Sowunmi said, “They (Tinubu and his team) created it by themselves. You can’t have FIRS chairman Yoruba, finance (minister) Yoruba, Customs (boss) Yoruba, CBN (governor) Yoruba. You can’t do that. And then suddenly, the Yoruba people came and said we have a new tax regime. They (people of other tribes) will be nervous.

“People are not in the National Assembly or the Senate not to protect the interest of their people; that’s why they are there. They are representatives of their people. That’s why the pushbacks will come.”

He said there is no bill without grey areas but the Tinubu government “caused it by itself”.

“You may mean well but let me have some of my own seated at the table to be sure that you mean well. Nobody will sit at the table and cause injury to his tribe,” he said.

The new tax bills introduced by the Tinubu administration have been enveloped in widespread controversy and sparked scathing criticisms and stiff opposition from many including the 36 state governors under the aegis of the National Economic Council (NEC). The 19 governors in northern Nigeria have also unequivocally rejected sections of the bills.

Sowunmi said, “I think the President needs to tell them in very clear language that I won’t be sitting here as president and refusing to do the right thing for the country only because you want to threaten me with elections. When we get to the bridge of election, we will cross it.”

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Tax reform bills: No plan to scrap any agency – FG

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The Federal Government says the proposed tax reform bills are not targeted at scrapping any agency of government.

The Director General of the National Orientation Agency, NOA, Lanre Issa-Onilu, made this statement at the flag-off of the National Sensitisation Campaign on the World HIV Day, Security Awareness, Discouraging Get Rich Quick Syndrome, World Human Rights Day and the Tax Reform Bills held in Jalingo, Taraba State capital.

Represented by the Director of Special Duties and State Operations, Mr David Akoji, the DG said that the agencies would be made to produce budgetary provisions of their activities.


According to him, the tax reform bills comprised four different components: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.

He said that the four bills, when passed, would eradicate double taxation, provide support for low income earners as businesses and earnings below N1 million would be tax free.

Issa-Onilu noted that the new reforms would put in place visible impact, pointing out that tax proceeds would be used to improve services like schools, hospitals and infrastructure across the country, urging Nigerians to understand details of the policy.

The director general stated further that NOA had deployed its machinery to reach out to all the local government areas across the country.

He said that HIV/Aids was among the areas to carry out sensitisation campaign to the people at the grass roots, explaining that the agency in collaboration with health authorities would carry out the assignment.

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Afe Babalola vs Dele Farotimi – Allow courts decide – Afenifere tells Nigerians amid planned protest

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The pan-Yoruba socio-cultural and socio-political organization, Afenifere, has called on Nigerians to allow the courts to do justice in determining the criminal defamation charges brought against a legal practitioner by the Nigeria Police Force, NPF.

The charges followed the complaint lodged at the Ekiti Police Command by a Senior Advocate of Nigeria and elder statesman, Chief Afe Babalola, alleging that the content of the 104-page book, ‘Nigeria and its Criminal Justice’ authored by Farotimi defamed him.

Recall that while the petitioner lives in Ado Ekiti, Ekiti State, the author, Farotimi, lives in Lagos where he was arrested and immediately moved to Ekiti.

The petitioner is of the view that the book which recently went viral can be read anywhere in the world, including Ekiti State where he resides, therefore, damaging his reputation.

Farotimi, a popular Nigerian activist was on Monday, arraigned before a Magistrate Court in Ado Ekiti.

The presiding judge, Magistrate Abayomi Adeosun declined his bail request and remanded him in prison custody until December 10.

A cross section of Nigerians have concluded plans to stage a mega protest in Lagos State, the Federal Capital Territory and Ekiti State on December 10 to demand his immediate release.

However, according to the National Publicity Secretary of Afenifere, Comrade Jare Ajayi, “the legal system provides an opportunity for parties in a dispute to prove their cases.”

Afenifere was of the strong opinion that the interests of both parties and the general public “must be protected and justice dispensed fairly.”

Ajayi, in a statement, added that “the court is in the best position to determine how these interests are protected, and to ensure that the prosecution is conducted in a manner that better serves the interest of justice.”

Afenifere enjoined all parties to avoid statements and actions that may lead to a breach of peace, while calling on the government to ensure a total observance of the rule of law.

Afenifere was of the view that the appropriate forum to determine whose rights had been breached and how was the court of law as established by the Nigerian constitution.

“We enjoin all parties to conduct themselves in total submission to and respect for the rule of law”, the spokesman added.

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