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NNPCL failed to remit N500bn revenue in 2024 – World Bank
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The World Bank has revealed that the Nigerian National Petroleum Company Limited has only been remitting 50 per cent of revenue gains from the removal of the Premium Motor Spirit subsidy to the Federation Account.
This disclosure is contained in the latest World Bank Nigeria Development Update, which highlights concerns over fiscal transparency and revenue management following the deregulation of the downstream petroleum sector.
It said out of the N1.1tn revenue from crude sales and other income in 2024, the NNPCL only remitted N600bn, leaving a deficit of N500bn unaccounted for.
The biannual report, titled “Building Momentum for Inclusive Growth,” said the national oil company used the remaining amount to settle its debt arrears.
In 2023, President Bola Tinubu received commendation from international financial agencies after he announced the removal of controversial petrol subsidies, a move that tripled petrol prices overnight but was projected to save the government billions of dollars annually.
The decision, part of broader economic reforms, was expected to free up funds for critical infrastructure and social programs.
But the plan was scuttled after backlash from Nigerians, as prices of household commodities more than tripled. The government only allowed full deregulation in October 2024, after the commencement of the Dangote refinery.
Despite the official removal, the World Bank report revealed that the NNPCL delayed the transfer of the associated revenue windfall, only commencing remittances to the Federation Account three months later, in January 2025.
It said the national oil firm has since been remitting just half of the proceeds, with the remainder reportedly used to offset legacy arrears.
The World Bank noted that the Federal Government’s revenues for 2025 are anticipated to be 70 per cent from oil and 30 per cent from non-oil sources, assuming full remittance of the fiscal savings from PMS subsidy removal.
“The fiscal outlook remains cautiously optimistic but hinges on the necessary consolidation of recent advances. First, 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.
“Despite the subsidy being fully removed in October 2024, NNPCL started transferring the revenue gains to the Federation only in January 2025. Since then, it has been remitting only 50 per cent of these gains, using the rest to offset past arrears,” the World Bank stated.
A further breakdown showed that NNPCL was the only laggard, remitting just N0.6tn to FAAC in 2024, down from N1.1tn in 2023.
The World Bank attributed this drop to the implicit subsidy regime that persisted until the third quarter of 2024.
It explained, “Gross FAAC revenues surged in 2024, but a large share was deducted and remitted back as revenues to states and local governments.
“Gross revenues collected by Nigeria’s main revenue agencies surged in 2024, despite minimal remittances from NNPCL. FAAC data show that gross revenues collected by the main revenue agencies (FIRS, NCS, NNPCL, and NUPRC) rose significantly from N16.5tn (7 per cent of GDP) in 2023 to N29.5tn (10.6 per cent of GDP) in 2024.
“The largest revenue increases came from FX-denominated sources that benefited from the removal of the FX subsidy, including oil revenues (royalties, taxes, signature bonuses), customs revenues, and the foreign trade-related component of VAT.”
While other FX-denominated revenue sources, such as oil royalties, taxes, and customs duties, recorded significant increases, the report noted that NNPCL remained the major laggard in remitting revenues to the Federation Account Allocation Committee.
“However, NNPCL was the only laggard, remitting just N0.6tn to FAAC in 2024, down from N1.1tn in 2023, largely due to the implicit PMS subsidy, which remained in place until the end of September 2024. Although the subsidy was fully removed on October 1, 2024, NNPCL did not start transferring the resulting revenue gains to the Federation until January 2025. From that point, it began remitting 50 per cent, with the other half being used to settle past arrears.
“As of February 2025, the bank noted that NNPCL’s claimed arrears stood at N7.8tn, while the Federation’s claims totalled N6.1tn, leaving net arrears of N1.7tn still owed to the national oil company.
“In spite of a sharp rise in gross revenues by the country’s main revenue-generating agencies from N16.5tn in 2023 to N29.5tn in 2024, NNPCL’s remittance fell to N600bn in 2024, down from N1.1tn in the previous year.”
To enhance fiscal discipline, the World Bank recommended a forensic audit of NNPCL’s finances and the adoption of standardised reporting templates to FAAC.
It also called for improved transparency in oil revenue accounting and stronger public financial management systems.
The Bretton Woods institution warned that unless full subsidy gains are channelled into the Federation Account, Nigeria’s fiscal consolidation efforts may be undermined, limiting the government’s ability to invest in infrastructure and social development.
The report stressed that resolving net arrears and ensuring full remittance of subsidy savings are critical for maintaining fiscal stability.
It stated, “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.”
“Resolving any remaining net arrears and channelling the full benefits of subsidy reform to the Federation is critical for sound fiscal management.
“Improve public finance management. Revenues are still low, constraining development spending. Ensure that revenue gains from the removal of the PMS subsidy flow to the Federation.
“The bank also advised to improve transparency in accounting for oil revenues by conducting a forensic audit of NNPCL, and adopting standardised reporting to FAAC.”
The Federal High Court sitting in Warri, Delta State, on Wednesday ordered the unconditional release of Prof. Arthur Ekpekpo and other detained leaders of Okuama community in Ughelli South Local Government Area.
Delivering judgment in a fundamental rights enforcement application, Justice Hyeladzira Nganjiwa granted the order while ruling on a motion filed on May 4, 2026.
The case, Suit No. FHC/WR/CS/42/2024: Prof. Arthur Ekpekpo & Ors v. Federal Government of Nigeria & Ors, also has July 13, 2026, fixed for continuation of hearing on the substantive matter.
The court had earlier ordered that the detained persons be produced before it, a directive which was reportedly not complied with by the military authorities.
Counsel to the applicants, Dr. Jonathan Ekperusi, appeared alongside Andrew Ubido, Esq., while Magdalene Irorere held brief for the 3rd and 5th respondents during the proceedings.
Following the ruling, members of the Okuama community expressed relief and joy over the court’s decision.
Victor Akemor, speaking on behalf of some community members, described the ruling as a welcome development.
“This is great news. Finally, we have reason to celebrate. The court is indeed the hope of the common man,” he said.
He also called on the Delta State Government to assist in facilitating the implementation of the court order and commended community leaders and legal representatives for their efforts.
The detained individuals, including Prof. Arthur Ekpekpo, President General of Ewu Kingdom; Chief Belvis Adogbo; Dennis Malaka; and Mabel Owhemu, have been in custody for nearly two years.
One of the detainees, Pa James Oghoroko, reportedly died while in detention.
The Okuama leaders were arrested by military personnel between August 18 and 19, 2024, following the killing of 17 soldiers near the community.
More than 100 Nigerians serving jail terms in Ethiopia may soon be transferred to Nigeria as both countries conclude arrangements for a prisoner transfer agreement.
Minister of Foreign Affairs, Bianca Odumegwu-Ojukwu, arrived in Addis Ababa for the signing of the pact alongside the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi.
The Nigerian delegation was received by Ethiopia’s Minister of State for Foreign Affairs and the country’s Chief of Protocol.
According to Odumegwu-Ojukwu, the agreement is scheduled to be signed on Wednesday.
She disclosed that four Nigerian inmates died during the lengthy process of negotiations, judicial reviews and ratification of the agreement.
“We cannot afford to lose any more precious lives. We are determined to bring home the living,” she stated in a post on her X handle.
The minister identified Kaliti Prison and Aba Samuel Prison as the facilities where the affected Nigerians are being held.
Odumegwu-Ojukwu described the agreement as a product of the longstanding relationship between Nigeria and Ethiopia, anchored on humanitarian considerations, justice and bilateral cooperation.
She said that while the Nigerian government continues to urge its citizens abroad to obey the laws of their host countries and protect the nation’s image, it remains committed to ensuring that Nigerians facing legal challenges overseas are treated fairly and in accordance with established legal frameworks.
The minister added that the welfare and protection of Nigerians abroad remain a key priority of President Bola Tinubu’s administration.
She also expressed appreciation to the Ethiopian government for its cooperation in bringing the agreement to fruition.
A Federal High Court in Abuja yesterday rescheduled further hearing for June 24 in the post-conviction proceedings being conducted in the N33.8 bilion case involving former Power Minister Saleh Mamman.
By the court’s schedule, a lawyer to Mamman, Mohammed Ahmed, is to appear to explain some aspects of an affidavit he filed, in which he made some allegations against the trial judge.
Yesterday’s adjournment was informed by the claim by another lawyer, Suleiman Yakubu that Ahmed was indisposed.
The court had on May 7 convicted Mamman on all 12-count charged on which he was prosecuted and sentenced him to 75 years imprisonment in absentia.
Upon an order for his arrest and production, the prosecuting agency, the Economic and Financial Crimes Commission (EFCC) apprehended him somewhere in Kaduna and presented him before the court on May 26.
The court directed that he should be committed to the Kuje prison where he is must serve his sentence.
Also on May 26, the prosecution informed the court about its motion for the forfeiture of some recently discovered assets allegedly acquired unlawfully by Mamman.
But, before the application could be heard, lawyer to the defendant exited the court without the notice, a development that informed an adjournment till June 8.
The recently discovered assets, according to court documents filed by the EFCC, include: Walijam Apartments, located on No.43, Plot 435 Lobito Crescent, Wuse 2, Abuja and Bloom Luxury Suites Nigeria Limited, located at No 5, Amana Crescent, New Estate Unguwan Rimi, Kaduna State.
They include a mansion on No 11, Misratah Street, Wuse 2, Abuja; a mansion on No 13, Misratah Street, Wuse 2, Abuja and A.U.A. Plaza, situated on Plot 734, Kade Street, Wuse 2, Abuja.
On June 8, lawyer to the prosecution, Rotimi Oyedepo, (SAN) reminded the court that the business of the day for hearing of the prosecution’s motion for consequential order to forfeit some properties belonging to the convict (Mamman).
The trial judge, Justice James Omotosho drew Oyedepo’s attention to a counter affidavit filed for the defendant, but which was deposed to by his other lawyer, Ahmed, who, in the affidavit, allegedly claimed that the judgment delivered on May 7 was done when the judge “became enraged.”
Oyedepo claimed not to have been served with the affidavit, following which Justice Omotosho ordered, who Yakubu, who appeared for Mamman, to give a copy to the prosecuting lawyer.
Justice Omotosho directed Ahmed, who deposed to the affidavit, should appear before his court on May 10 to provide explanation in relation to some of his averments in the affidavit he deposed to.
Ahmed was absent on May 10. Yakubu, who also appeared for the defendant, claimed Ahmed was ill.
Yakubu, who apologised for the manner he left the court on the previous date, claimed that Ahmed has been ill for some time, saying: “He has been coughing, and we don’t know if it is tuberculosis because the cough has defiled all drugs.”
He further claimed that Ahmed has gone to his village for treatment and urged the court to adjourn further hearing till the following week.
At that point, Justice Omotosho sought to know how Yakubu came to the conclusion that Ahmed suffered from tuberculosis.
Responding, Yabuku said it was because Ahmed had taken drugs and his ailments persisted, a response, that prompted prosecuting lawyer to express disappointment with the attitude of the defence lawyers.
Oyedepo said: “This is what we kept complaining about. We are counsel in the temple of justice my Lord. I don’t know when I started experiencing a bitter part of my colleagues in this matter.
“I don’t think this is proper. As it stands now, our motion is ripe for hearing.”
Oyedepo, who accused the defendant of deploying dilatory tactics, said: “these tactics will not work,” following which he agreed to an adjournment.
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