The World Bank says the Nigerian National Petroleum Company Limited (NNPCL) was only able to remit just N500 billion revenue in 2024.
The global lender said this in its Nigeria Development Update released on Monday, noting that the nation oil company remitted half of revenue gains from the removal of the Premium Motor Spirit subsidy to the Federation Account last year.
The World Bank 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, entitled, ‘Building Momentum for Inclusive Growth,’ said the national oil company used the remaining amount to settle its debt arrears.
The Bola Tinubu administration removed petrol subsidies in 2023 and introduced a market-led framework for the oil industry.
Part of the revenue gains were expected to be paid into the federation account and shared by all levels of government.
However, the NNPCL failed to do so.
The World Bank said federal government revenues are expected to come from both oil and non-oil sources, with 70 percent from oil, if savings from PMS subsidy removal are remitted.
The lender said Nigeria’s 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.
