 remitted only half of the expected revenue from the removal of the Premium Motor Spirit (PMS) subsidy to the Federation Account.){kind=link}
The World Bank has shed light on why the Nigerian National Petroleum Company Limited (NNPCL) remitted only half of the expected revenue from the removal of the Premium Motor Spirit (PMS) subsidy to the Federation Account.
This revelation came in the World Bank’s latest Nigeria Development Update (NDU) report, released on Monday.
The report raised flags about fiscal transparency and revenue accountability following the deregulation of Nigeria’s downstream petroleum sector under President Bola Ahmed Tinubu’s administration in October 2024.
According to the World Bank, of the N1.1 trillion earned from crude oil sales and other revenue streams in 2024, NNPCL remitted just N600 billion, leaving N500 billion unaccounted for.
The document also noted that NNPCL’s remittance to the Federation Account Allocation Committee (FAAC) in 2024 was N600 billion—a significant drop from the N1.1 trillion remitted in 2023.
The drop was primarily attributed to the implicit fuel subsidy regime, which remained in effect until the end of September 2024.
“…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 percent, with the other half being used to settle past arrears.”
Despite a substantial increase in gross revenues by major revenue-generating agencies—from N16.5 trillion in 2023 to N29.5 trillion in 2024—NNPCL’s contribution significantly declined.
The World Bank has urged the NNPCL to ensure full transparency and implement complete remittance of revenue gains following the subsidy removal to restore fiscal trust and accountability.