Hold up! A new report from the World Bank is dropping jaws all over Nigeria. Despite a surge in overall revenue, the Nigerian National Petroleum Company (NNPC) Limited is sending way less money to the government. We’re talking a massive N500 billion drop in 2024 alone! What’s going on? Keep reading to find out what’s behind this financial mystery and what it means for the future of Nigeria’s economy.
Quick Highlights:
- NNPC’s remittance to the federation account dropped by N500 billion in 2024.
- The World Bank attributes the drop to the lingering impact of the “implicit petrol subsidy”.
- Overall revenue collection by main agencies rose significantly, except for NNPC.
- The World Bank is urging Nigeria to enhance transparency and conduct a forensic audit of NNPC.
The Big Drop: Where Did the Money Go?
The World Bank’s latest Nigeria Development Update (NDU) is raising eyebrows. It reveals that NNPC’s remittance to the federation account plummeted from N1.1 trillion in 2023 to just N600 billion in 2024. That’s a staggering N500 billion disappearance act! This happened even as Nigeria’s revenue agencies (FIRS, NCS, NNPCL, and NUPRC) saw their gross revenues jump from N16.5 trillion to N29.5 trillion.
The Subsidy Culprit?
The World Bank points a finger at the “implicit petrol subsidy,” which stuck around until September 2024. Remember when President Tinubu declared the end of petrol subsidies in May 2024? Well, NNPC later claimed the government still owed them N7.8 trillion for under-recovery. It’s like the subsidy drama never really ended!
FX Gains and NNPC’s Slow Response
The good news? The surge in revenue largely came from foreign exchange-denominated sources after the FX subsidy removal. Think oil royalties, taxes, customs duties, and VAT on foreign trade. But here’s the catch: NNPC didn’t immediately pass these gains to the federation. Instead, they started remitting only in January 2025, and even then, it was just 50 percent. The other half? It’s supposedly going towards settling past debts.
A Whopping Debt Disagreement
The plot thickens! NNPC claims the government owes them N7.8 trillion, while the government says it’s only N6.1 trillion. That leaves a net difference of N1.7 trillion. Someone needs to get their numbers straight!
World Bank’s Prescription for Nigeria
The World Bank isn’t just pointing fingers; they’re offering solutions. They’re urging Nigeria to:
- Transfer all revenue gains from the subsidy removal to the federation.
- Be transparent by publishing monthly fiscal reports, quarterly budget updates, and FAAC data on time.
- Conduct a forensic audit of NNPC and clear those overdue financial statements from 2021 to 2023.
What This Means for You
Why should you care? Because this affects everything! Less money for the government means less money for schools, hospitals, roads, and everything else that makes Nigeria tick. Transparency and accountability are key to a better future for all Nigerians.
The Bigger Picture
The situation with NNPC’s remittances highlights a critical need for greater transparency and efficiency in Nigeria’s oil and gas sector. According to Premium Times, NNPC has faced criticism for its lack of transparency in the past. Ensuring that NNPC is accountable and transparent is essential for Nigeria’s economic stability and growth.
About The Author
