The Nigerian National Petroleum Company (NNPC) has been remitting only half of the savings from the removal of petrol subsidies, a new report from the World Bank reveals.

In the report, the World Bank states, “Despite the subsidy being fully removed in October 2024, NNPC 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 move to remove petrol subsidies, announced by President Bola Tinubu last year, was designed to save the government billions annually by tripling petrol prices overnight.

The funds were intended to support critical infrastructure and social programs, but the World Bank’s update highlights that NNPC’s remittances to the Federation Account, which benefits federal, state, and local governments, have been far lower than expected.

The World Bank’s report continues, “As of March 2025, this full remittance had not yet occurred, as NNPC claims it has large PMS-related subsidies that should be settled first.”

Federal government revenues for 2025 are anticipated to rely heavily on oil, with projections showing 70% from oil and 30% from non-oil sources.

However, the report indicates that without full remittance of these fiscal savings, the country may face challenges in meeting its financial targets.