The World Bank has revealed that the Nigerian National Petroleum Company Limited (NNPCL) failed to remit N500 billion in revenue gains from the removal of fuel subsidy to the Federation Account in 2024.
According to the latest Nigeria Development Update, titled “Building Momentum for Inclusive Growth,” the NNPCL only transferred N600 billion out of the N1.1 trillion it generated from crude sales and other sources in 2024, retaining the rest to settle legacy debt arrears.
Despite President Bola Tinubu’s 2023 decision to remove the controversial fuel subsidy, which aimed to save billions and boost infrastructure funding, the World Bank noted that the NNPCL delayed remittances until January 2025, three months after the subsidy removal took full effect in October 2024.
“The fiscal outlook remains cautiously optimistic but hinges on the necessary consolidation of recent advances. It is essential to ensure that the full revenue gains from the removal of the PMS subsidy—estimated at 2.6 per cent of GDP in 2024—are transferred to the Federation,” the report outlined.
The report further revealed that NNPCL’s gross remittances to the Federation Account Allocation Committee (FAAC) fell from N1.1 trillion in 2023 to N600 billion in 2024, largely due to the implicit subsidy regime that persisted until the third quarter of 2024.
The World Bank has recommended a forensic audit of NNPCL’s finances to enhance fiscal transparency and called for standardized reporting to FAAC to ensure full revenue accountability.
It warned that without these measures, Nigeria’s fiscal consolidation efforts could be undermined, limiting the government’s ability to invest in critical infrastructure and social programmes.
