The Nigerian National Petroleum Company Limited (NNPCL) has come under renewed scrutiny following revelations by the World Bank that it remits only 50 percent of the revenue gains from the removal of fuel subsidies to the Federation Account.
The international financial institution has now called for a forensic audit of the state-owned oil giant amid rising concerns over transparency and fiscal accountability.
In its recent Nigeria Development Update published on Monday, the World Bank stated that despite the formal end of petrol subsidies in October 2024, NNPCL only began partial remittances of the subsidy savings in January 2025—and has since forwarded just half of the expected proceeds to the Federation Account Allocation Committee (FAAC).
The remaining 50 percent, according to the report, is being used to offset outstanding petrol subsidy debts.
“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, using the rest to offset past arrears,” the report stated.
Frustrated by the seeming lack of accountability, the World Bank called on the Nigerian Government to launch a full forensic audit of NNPCL’s books and stricter reporting standards for money sent to the Federation Account Allocation Committee (FAAC). Without transparency, the bank warns, Nigeria’s economic recovery plans are built on shaky ground.
POLITICS NIGERIA earlier reported that in 2023, NNPCL contributed ₦500 billion to the Federation Account. By 2024, that dropped to just ₦300 billion. Dividends from oil contracts (PSC arrangements) also halved—from ₦600 billion in 2023 to ₦300 billion in 2024.