World Bank report reveals NNPCL’s N500bn unremitted revenue in 2024
The Nigerian National Petroleum Company Limited (NNPCL) has faced scrutiny regarding its remittance practices following the removal of petrol subsidy.
According to the latest report from the World Bank, there are serious concerns about fiscal transparency and revenue management within the organization.
In 2024, NNPCL generated a total revenue of N1.1 trillion from crude sales and other income sources. However, it only remitted N600 billion to the Federation Account Allocation Committee (FAAC), resulting in a deficit of N500 billion that remains unaccounted for.
This situation has raised alarms about the company’s financial practices and its impact on Nigeria’s overall fiscal health.
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The World Bank’s report indicates that NNPCL is currently remitting only 50% of the revenue gains associated with the removal of the PMS subsidy. The remaining funds are reportedly being used to settle debt arrears, which have accumulated over time.
As of February 2025, NNPCL claimed it had N7.8 trillion in arrears, while the Federation’s claims totaled N6.1 trillion, leaving a net arrear balance of N1.7 trillion owed to NNPCL.
The removal of fuel subsidies was part of economic reforms initiated by President Bola Tinubu in 2023, aimed at saving billions for infrastructure and social programs. Although this decision led to an immediate tripling of petrol prices, it was expected to free up funds for critical investments in public services. However, full deregulation did not occur until October 2024, coinciding with the commencement of operations at the Dangote refinery.
Despite officially removing subsidies in October 2024, NNPCL delayed transferring any revenue gains to the Federation Account until January 2025. Since then, it has continued to remit only half of these gains.
The World Bank emphasizes that unless full remittance gains from subsidy removal are channeled into the Federation Account, Nigeria’s fiscal consolidation efforts may be undermined. The anticipated government revenues for 2025 are projected to be composed of 70% from oil and 30% from non-oil sources, contingent upon full remittance compliance. The report advocates for enhanced fiscal discipline through measures such as forensic audits and improved transparency in oil revenue accounting.
