The World Bank has raised alarm over the Nigerian National Petroleum Company Limited’s (NNPCL) failure to fully remit revenue generated from the removal of petrol subsidies in 2024, withholding an estimated ₦500 billion.
This was disclosed in its latest Nigeria Development Update report titled “Building Momentum for Inclusive Growth”, where the global lender pointed out that out of ₦1.1 trillion generated by NNPCL from crude sales and other sources in 2024, only ₦600 billion was paid into the Federation Account.
The bank stated that the remaining ₦500 billion was retained by the national oil company to settle legacy debts — a decision it described as a challenge to fiscal transparency and sound public finance management.
Following President Bola Tinubu’s decision to remove petrol subsidies in 2023 — a reform praised by international financial bodies — the Federal Government was expected to save significant revenue to fund critical sectors. Although the subsidy was fully removed in October 2024, NNPCL delayed remitting the gains until January 2025 and has since been transferring only 50 per cent of the funds to the Federation Account.
The World Bank stressed that such practices undermine efforts at fiscal consolidation and warned that continued lack of transparency could affect government investments in infrastructure and social programmes.
Despite a sharp increase in overall government revenue in 2024 — from ₦16.5 trillion in 2023 to ₦29.5 trillion — NNPCL’s remittance dropped by almost half, making it the only major revenue agency lagging behind.
The report further revealed that NNPCL claims to have ₦7.8 trillion in arrears, while the Federation claims ₦6.1 trillion, leaving a net debt of ₦1.7 trillion still unresolved.
To address these issues, the World Bank called for:
– A forensic audit of NNPCL’s finances
– The adoption of standard reporting practices to FAAC
– Improved oil revenue transparency and accountability
It concluded that ensuring full remittance of subsidy savings is essential for Nigeria’s economic stability and development goals.
