World Bank Blasts NNPC Over ₦500bn Shortfall in Fuel Subsidy Revenue — Only Half Remitted to Nigeria’s Account
✍️ By: IDNN Business & Economic Policy Desk
In a jaw-dropping revelation, the World Bank has accused the Nigerian National Petroleum Company Limited (NNPCL) of remitting only 50% of the savings from the controversial fuel subsidy removal to the Federation Account.
The findings were detailed in the global lender’s latest Nigeria Development Update titled “Building Momentum for Inclusive Growth.”
“Despite subsidy removal in October 2024, NNPC started transferring the revenue gains only in January 2025 — and even then, only half was remitted,” the report stated.
THE NUMBERS:
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Total subsidy savings (2024): ₦1.1 trillion
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NNPC remittance to FAAC: ₦600 billion
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Missing funds: ₦500 billion
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NNPC claims: Funds were used to offset inherited arrears
This revelation flies in the face of public expectations that subsidy removal would free up cash for infrastructure, healthcare, and education.
⛽ BACKDROP:
President Bola Tinubu scrapped fuel subsidies in 2023, causing petrol prices to triple. Though intended to save billions, actual deregulation only kicked in October 2024, after the Dangote Refinery became operational.
Yet, while revenue surged, remittances didn’t match.
“NNPCL has become the sole underperformer among Nigeria’s major revenue agencies,” the report noted.
THE CONTRAST:
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FIRS, NCS, NUPRC & others boosted revenue from ₦16.5tn in 2023 to ₦29.5tn in 2024 (10.6% of GDP)
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NNPCL’s FAAC share: Down from ₦1.1tn in 2023 to ₦600bn in 2024
ARREARS DISPUTE:
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NNPCL claims FG owes it: ₦6.1 trillion
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FG disputes, claiming: ₦7.8 trillion
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Net arrears owed to NNPCL: ₦1.7 trillion
Analysts say the arrears narrative is a smokescreen masking lack of transparency.
IDNN ANALYSIS:
This isn’t just about accounting — it’s a crisis of public trust. NNPC’s opacity is undermining the gains of subsidy reform and casting doubt on Nigeria’s fiscal accountability drive.
With Nigeria’s budget depending on oil for 70% of its revenue, the missing ₦500bn isn’t just a gap — it’s a gaping credibility wound.