The World Bank has raised concerns over low remittances by the Nigerian National Petroleum Company Limited (NNPCL) despite the removal of fuel subsidies.
According to the apex bank’s Nigeria Development Update, NNPCL has failed to fully remit revenue to the Federation Accounts Allocation Committee (FAAC) despite the subsidy removal in October 2024.
The report stated that NNPCL started transferring revenue gains to the Federation only in January 2025 and has been remitting only 50% of these gains, using the rest to offset past arrears.
“Resolving any remaining net arrears and channeling the full benefits of subsidy reform to the Federation is critical for sound fiscal management,” the report emphasized.
The World Bank called for a forensic audit of NNPCL, citing the need for transparency in accounting for oil revenues. “Improving transparency in accounting for oil revenues by conducting a forensic audit of NNPCL, and adopting standardized reporting to FAAC,” is essential, the report noted.
A review of the document showed a significant drop in Federation share and PSC dividend from NNPCL between 2023 and 2024.
The Federation share stood at ₦500 billion between January and December 2023 but fell to ₦300 billion between January and December 2024. Similarly, the PSC dividend dropped from ₦600 billion in 2023 to ₦300 billion in 2024.
