The Nigerian National Petroleum Company Limited (NNPC Ltd.) failed to remit over ₦500 billion in expected oil revenue gains to the Federation Account in 2024, according to a new report by the World Bank.
In the latest Nigeria Development Update released Monday, the World Bank disclosed that NNPC generated ₦1.1 trillion in 2024 from crude sales and subsidy-related windfalls but remitted only ₦600 billion to the Federation Account.
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 percent of these gains,” the report stated
A Fiscal Red Flag
Instead of full transfers, NNPC reportedly used the balance to service legacy arrears—now totaling ₦7.8 trillion as of February 2025. Meanwhile, the Federation’s counter-claims sit at ₦6.1 trillion, leaving a disputed ₦1.7 trillion in net arrears.
The Missed Opportunity
The World Bank estimates that full revenue remittance from PMS subsidy removal could represent 2.6% of Nigeria’s GDP in 2024—a game-changing contribution to national development.
Yet, NNPC remains the only major agency lagging in full accountability.
NNPC Outpaced by Others
While other FX-based revenue sources (like oil taxes and customs duties) surged, NNPC’s remittance dropped from ₦1.1 trillion in 2023 to ₦600 billion in 2024.
“In spite of a sharp rise in national revenues, NNPCL’s remittance dropped significantly,” the World Bank said.
World Bank’s Key Recommendations
- Forensic audit of NNPCL’s finances
- Adoption of standardized revenue reports to FAAC
- Resolution of net arrears between NNPC and the Federation
- Improved transparency and public financial management
The Bigger Picture
While other revenue-generating agencies posted a massive 78% growth—jumping from ₦16.5 trillion in 2023 to ₦29.5 trillion in 2024—NNPC Ltd. stood out as the “major laggard.”
“In spite of a sharp rise in national revenues, NNPCL’s remittance dropped from ₦1.1 trillion in 2023 to just ₦600 billion in 2024,” the report noted.
NaijaEnquirer Quick Take
The bigger question is: Can Nigeria afford partial transparency from its most strategic state-owned enterprise at a time of economic recalibration?
As calls grow for openness, will NNPC Ltd. finally come clean—or will we keep recycling fiscal blind spots?
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