WORLD BANK REVEALS NNPC ONLY REMITTING 50% OF SUBSIDY REMOVAL REVENUE TO FEDERATION
The World Bank has revealed that the Nigerian National Petroleum Company Limited (NNPC) is remitting only half of the revenue gains realized from the removal of petrol subsidies to the Federation Account, keeping the rest to offset past debts. This disclosure is contained in the Bank’s latest Nigeria Development Update released Monday May 12.
Despite the official subsidy removal by October 2024, NNPC only began transferring funds in January 2025—and even then, only 50%. The World Bank warned that withholding full proceeds undermines transparency and sound fiscal policy. The update also noted that Nigeria’s 2025 budget includes overly ambitious revenue targets and advised close monitoring to avoid an unmanageable fiscal deficit.
President Tinubu recently sacked the board of NNPC Ltd amid corruption investigations. The EFCC is now probing former GCEOs Mele Kyari and Abubakar Yar’Adua over alleged misappropriation of funds and is reviewing salary records of 14 current and retired executives. The IMF has also called for greater openness in oil revenue management to ensure that fuel subsidy removal benefits the broader economy.
