The appointment of the accounting firm, PricewaterHouse Coopers (PwC), to conduct a forensic audit of Nigerian National Petroleum Corporation (NNPC), by the Federal Government, is a welcome development. Though long overdue, this coming investigation of the accounts of the nation’s oil monolith will hopefully lay to rest the allegations of financial malfeasance that have been swirling around the corporation for some time now. We urge that the audit should follow strict accounting rules and be transparent, with no room for error or ambiguity in its recommendations.
Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, disclosed the approval of the PwC audit during the recently concluded World Economic Forum on Africa (WEFA) in Abuja. She said the investigation became necessary following conflicting allegations of un-remitted revenue to the Federation Account made by the now suspended Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi. Sanusi had, early this year, claimed that NNPC was yet to remit a princely $20 billion into the Federation Account as provided for in Section 162(1) of the 1999 Constitution (as amended).
A maximum of four months has been given to the forensic auditors to complete this assignment. Although the terms of reference of the assignment were not made public, it is expected that the audit will go beyond reconciling the disputed figures being bandied around, to cover all instances of misfeasance and nonfeasance that have made the agency the centre of corruption allegations over the years. Such broad terms of reference, we believe, will help restore public confidence in the operations of the corporation and streamline its activities for better accountability.
Audit reports on the operations of NNPC have, for many years of its existence, painted a picture of a public organisation with little regard for transparency in its bookkeeping. The current allegation of a “missing $20 billion” is just one of the financial infractions that the agency has been accused of over the years. The NNPC has consistently absolved itself of these allegations. This audit will, hopefully, help to unearth the true situation of things at the agency and rest the unceasing allegations, one way or the other. It is important that we lay the ever-looming ghost of corruption allegations in the agency to rest, once and for all.
Beyond this audit, let the current effort herald a new beginning in the enthronement of transparency in the business operations of this corporation. This is the time to design lucent strategies and processes that can unearth instances of financial wrongdoing and restore the confidence of Nigerians in the way the agency manages the nation’s oil revenue.
We enjoin PwC to conduct this assignment with utmost sincerity of purpose and professionalism. There should be no room for the kind of shortcomings that informed the indictment of a reputable accounting firm during the oil subsidy probe.
The auditors should also be mindful of the problems that made previous audit reports subjects of intense controversy, and their recommendations, virtually unimplementable. It is also necessary for the firm to avoid possible conflicts of interest that could undermine its work.
The auditing firm needs reminding that its professional reputation is at stake. It must, therefore, draw boundaries between itself and the subject of its audit. In this way, it can demonstrate the much-needed neutrality required to do a dispassionate job, and make appropriate recommendations.
The objective of this audit should be to ensure that NNPC operates within the laws that set it up, and abides by the regulations that are binding on it. The audit should also lead to an upgrade of its financial processes in the best interest of the nation.
Because of the importance of oil revenue to Nigeria’s economy, we advise the auditors to design processes for the transparent and efficient management of oil receipts. This, we hope, will improve corporate governance and enthrone global best practices. What Nigerians want at this time is a thorough forensic investigation of the entire financial operations of the NNPC. Public expectation is high and PwC should not disappoint the people.
