Connect with us

BIG STORY

NNPCL Did Not Remit N500bn Revenue In 2024 — World Bank

Published

on

The World Bank has revealed that the Nigerian National Petroleum Company Limited has only been remitting 50 per cent of revenue gains from the removal of the Premium Motor Spirit subsidy to the Federation Account. This highlights concerns about fiscal transparency and revenue management in Nigeria’s downstream petroleum sector following deregulation.

This disclosure is contained in the latest World Bank Nigeria Development Update, which highlights concerns over fiscal transparency and revenue management following the deregulation of the downstream petroleum sector. The report, crucial for understanding Nigeria’s economic situation, points to issues with NNPCL’s revenue remittances.

It said out of the N1.1tn revenue from crude sales and other income in 2024, the NNPCL only remitted N600bn, leaving a deficit of N500bn unaccounted for. This significant shortfall raises questions about NNPCL’s financial operations and its impact on Nigeria’s Federation Account.

The biannual report, titled “Building Momentum for Inclusive Growth,” said the national oil company used the remaining amount to settle its debt arrears. This explanation from the World Bank sheds light on why the full revenue from subsidy removal has not reached the Federation Account.

In 2023, President Bola Tinubu received commendation from international financial agencies after he announced the removal of controversial petrol subsidies, a move that tripled petrol prices overnight but was projected to save the government billions of dollars annually. This policy shift was a key moment in Nigeria’s economic reforms.

The decision, part of broader economic reforms, was expected to free up funds for critical infrastructure and social programs. However, the intended benefits are now under scrutiny due to the issues with revenue remittance highlighted by the World Bank.

But the plan was scuttled after backlash from Nigerians, as prices of household commodities more than tripled. The government only allowed full deregulation in October 2024, after the commencement of the Dangote refinery. This delay in full deregulation has further complicated the expected revenue gains.

Despite the official removal, the World Bank report revealed that the NNPCL delayed the transfer of the associated revenue windfall, only commencing remittances to the Federation Account three months later, in January 2025. This lag in remittance has affected the immediate fiscal benefits of subsidy removal.

It said the national oil firm has since been remitting just half of the proceeds, with the remainder reportedly used to offset legacy arrears. This consistent partial remittance is a key concern raised by the World Bank regarding NNPCL’s financial transparency.

The World Bank noted that the Federal Government’s revenues for 2025 are anticipated to be 70 per cent from oil and 30 per cent from non-oil sources, assuming full remittance of the fiscal savings from PMS subsidy removal. This projection underscores the importance of NNPCL’s full compliance for Nigeria’s fiscal health.

“The fiscal outlook remains cautiously optimistic but hinges on the necessary consolidation of recent advances. First, it is essential to ensure that the full revenue gains from the removal of the PMS subsidy—estimated at 2.6 per cent of GDP in 2024—are transferred to the Federation.

“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 per cent of these gains, using the rest to offset past arrears,” the World Bank stated. This direct quote from the World Bank’s report emphasizes the core issue of NNPCL’s partial remittances.

A further breakdown showed that NNPCL was the only laggard, remitting just N0.6tn to FAAC in 2024, down from N1.1tn in 2023. This comparison highlights the significant drop in NNPCL’s remittances to the Federation Account Allocation Committee.

The World Bank attributed this drop to the implicit subsidy regime that persisted until the third quarter of 2024. This provides context for the lower remittance figure from NNPCL in 2024.

It explained, “Gross FAAC revenues surged in 2024, but a large share was deducted and remitted back as revenues to states and local governments.

“Gross revenues collected by Nigeria’s main revenue agencies surged in 2024, despite minimal remittances from NNPCL. FAAC data show that gross revenues collected by the main revenue agencies (FIRS, NCS, NNPCL, and NUPRC) rose significantly from N16.5tn (7 per cent of GDP) in 2023 to N29.5tn (10.6 per cent of GDP) in 2024.

“The largest revenue increases came from FX-denominated sources that benefited from the removal of the FX subsidy, including oil revenues (royalties, taxes, signature bonuses), customs revenues, and the foreign trade-related component of VAT.” This data from the World Bank illustrates the broader revenue trends in Nigeria, contrasting NNPCL’s performance with other agencies.

While other FX-denominated revenue sources, such as oil royalties, taxes, and customs duties, recorded significant increases, the report noted that NNPCL remained the major laggard in remitting revenues to the Federation Account Allocation Committee. This reinforces the World Bank’s concern specifically regarding NNPCL’s revenue remittance practices.

“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 per cent, with the other half being used to settle past arrears.

“As of February 2025, the bank noted that NNPCL’s claimed arrears stood at N7.8tn, while the Federation’s claims totalled N6.1tn, leaving net arrears of N1.7tn still owed to the national oil company.

“In spite of a sharp rise in gross revenues by the country’s main revenue-generating agencies from N16.5tn in 2023 to N29.5tn in 2024, NNPCL’s remittance fell to N600bn in 2024, down from N1.1tn in the previous year.” This detailed excerpt from the World Bank’s findings provides specific figures and timelines related to NNPCL’s revenue remittances and arrears.

To enhance fiscal discipline, the World Bank recommended a forensic audit of NNPCL’s finances and the adoption of standardised reporting templates to FAAC. These recommendations aim to improve transparency and accountability in NNPCL’s financial dealings.

It also called for improved transparency in oil revenue accounting and stronger public financial management systems. The World Bank emphasizes the need for systemic improvements in how Nigeria manages its oil revenues.

The Bretton Woods institution warned that unless full subsidy gains are channelled into the Federation Account, Nigeria’s fiscal consolidation efforts may be undermined, limiting the government’s ability to invest in infrastructure and social development. This warning highlights the potential negative consequences of NNPCL’s partial remittances on Nigeria’s economic progress.

The report stressed that resolving net arrears and ensuring full remittance of subsidy savings are critical for maintaining fiscal stability. According to the World Bank, addressing these issues is crucial for Nigeria’s overall financial health.

It stated, “The fiscal outlook remains cautiously optimistic but hinges on the necessary consolidation of recent advances.” This reiterates the World Bank’s cautious optimism, contingent on resolving the revenue remittance issues.

“It is essential to ensure that the full revenue gains from the removal of the PMS subsidy—estimated at 2.6 per cent of GDP in 2024—are transferred to the Federation.” This direct quote underscores the importance of full remittance for Nigeria’s fiscal well-being.

“Resolving any remaining net arrears and channelling the full benefits of subsidy reform to the Federation is critical for sound fiscal management.

“Improve public finance management. Revenues are still low, constraining development spending. Ensure that revenue gains from the removal of the PMS subsidy flow to the Federation.

“The bank also advised to improve transparency in accounting for oil revenues by conducting a forensic audit of NNPCL, and adopting standardised reporting to FAAC.” These final recommendations from the World Bank provide actionable steps for improving Nigeria’s fiscal management and NNPCL’s accountability.

 

Credit: The Punch

BIG STORY

No Permanent Terrorist Base in South-West — School Attack Was Isolated Event —- DHQ

Published

on

The Defence Headquarters (DHQ) says the recent attacks in Oyo state are isolated criminal incidents and do not indicate the presence of an established terrorist network in the region.

In a statement issued on Tuesday, Michael Onoja, the DHQ director of defence media operations, said previous military clearance operations in the Old Oyo National Park had significantly weakened criminal groups operating in the area.

The DHQ statement comes days after gunmen attacked Baptist Nursery and Primary School, Yawota; Community Grammar School, Esiele; and LA Primary School in Ogbomoso, all in the Oriire LGA of Oyo state.

Two people were killed during the attacks, while at least 45 schoolchildren, alongside a principal and several teachers, were reportedly abducted. One of the abducted teachers was later killed in captivity.

However, Onoja said intelligence assessments have shown that there is no permanent terrorist base within the forests or hinterlands of the south-west.

“It is pertinent to state that the incident was an isolated criminal act and does not reflect the existence of any entrenched terrorist structure in the region, as the Armed Forces had earlier conducted a comprehensive clearance operation of the Old Oyo National Park, effectively neutralising the operational capacity of criminal elements within that corridor,” the statement reads.

“Current intelligence assessments do not support the conclusion that any structured or permanent terrorist base exists within the forests or hinterlands of the South West region.

“Criminal elements, however audacious their recent activities, do not constitute an established insurgent presence, and the defence headquarters cautions against narratives that may cause unnecessary public panic or embolden adversaries by overstating their capabilities.”

Onoja assured families of the abducted victims that the military remained committed to ensuring their safe and unconditional release.

According to him, troops are currently carrying out search-and-rescue operations across forested areas of the state in collaboration with other security agencies and local vigilante groups.

“The joint effort with all security agencies and local vigilantes will ensure that the forest is thoroughly cleared of criminal elements and that lasting peace is restored to the region,” he said.

“The Armed Forces of Nigeria will not relent until every abducted victim is safely recovered, the criminal networks responsible are dismantled, and normalcy is fully restored across the South West and indeed all of Nigeria.”

Continue Reading

BIG STORY

US Moves To Revoke Citizenship of Nigerian Convicted in $11.6m Fraud Case

Published

on

The United States Department of Justice has filed a civil complaint seeking to revoke the US citizenship of a Nigerian-born man, Emmanuel Oluwatosin Kazeem, convicted of masterminding a large-scale identity theft and tax fraud scheme that allegedly defrauded US authorities of millions of dollars.

In a statement published on its website on Monday, the department said the complaint was filed before the US District Court in Baltimore, Maryland, accusing Kazeem of unlawfully obtaining American citizenship through fraud and concealment of criminal conduct.

Kazeem was convicted in 2017 on 19 counts of mail fraud, wire fraud, aggravated identity theft, and conspiracy to commit fraud, and was sentenced to 15 years’ imprisonment.

His sentence was later commuted in 2024 by former US President Joe Biden after he had spent about six years in prison.

Announcing the action, Assistant Attorney General Brett A. Shumate said the administration would continue targeting individuals who fraudulently obtained US citizenship.

“The Trump Administration will not permit wrongdoers to retain the US citizenship that they were never entitled to in the first place,” Shumate said.

He added, “U.S. Citizenship is a privilege, and we will continue to ask courts to revoke a status that was obtained through fraud and deceit.”

According to the complaint, Kazeem’s fraud activities began before and continued after his naturalisation, which prosecutors argued made him legally ineligible for citizenship.

The department also alleged that Kazeem engaged in a sham marriage to obtain permanent resident status before later marrying another woman, an action authorities said further disqualified him from naturalisation.

Court documents showed the investigation started in 2013 after a victim in Medford, Oregon, informed the Internal Revenue Service that fake federal and state tax returns had been filed using her family’s personal identifying information.

Search warrants later executed in Illinois, Maryland, and Georgia reportedly uncovered prepaid debit cards, money orders, electronic devices, and cash tied to fraudulent tax refunds.

According to the Justice Department, the searches helped investigators identify Kazeem “as the leader and mastermind of the scheme.”

Authorities alleged that the syndicate possessed stolen personal identifying information belonging to more than 259,000 victims and that Kazeem purchased over 91,000 identities from a Vietnamese hacker who breached an Oregon company’s private database.

The department said Kazeem and his co-conspirators used the stolen identities to file fraudulent tax returns between 2012 and 2015, while also securing thousands of electronic filing PINs to bypass IRS security procedures.

“In total, Kazeem was linked to 10,139 fraudulent federal tax returns attempting to get over 91 million dollars in refunds and successfully received over 11.6 million dollars,” the statement said.

Authorities further alleged that more than 2,000 wire transfers valued at over $2.1m were sent to Nigeria, with over 700 transfers directly linked to Kazeem.

The statement added that Kazeem used proceeds from the scheme to make “a nearly $200,000 down payment on a newly constructed house” and also attempted to fund “a 6 million dollar, 4-star hotel in Lagos, Nigeria.”

The Justice Department said Kazeem transferred ownership interests in some U.S. properties to his sister in Nigeria for $10 shortly before his arrest in 2015.

It added that the case was jointly investigated by agencies including the FBI, IRS-Criminal Investigation, and the Department of Homeland Security, while the denaturalisation proceedings would now be handled by the Civil Division’s Office of Immigration Litigation.

Continue Reading

BIG STORY

Residents in Fear After Woman in Her 60s is Raped, Strangled To Death in Badagry

Published

on

Residents of Oke Egan in the Ilogbo-Eremi area of Badagry, Lagos State, were thrown into shock on Friday after the body of a sexagenarian woman, Victoria Adegoke, was found abandoned in a nearby bush.

It was learnt from community sources on Sunday that the deceased was allegedly found naked and was suspected of having been raped and strangled before her body was dragged into the bush.

One of the photographs obtained by journalists on Sunday showed what appeared to be marks indicating that the victim’s hands had been tied by her assailants.

A community leader, who spoke on condition of anonymity because of the sensitivity of the incident, said Adegoke, believed to be in her 60s and a grandmother, was found around 6:10am on Friday.

He told our correspondent that the deceased had attended a programme at The Joy of Christ Ministry, popularly known as Ayo Jesu Church.

According to the source, Adegoke was allegedly ambushed by some hoodlums while returning home in the early hours of the day.

“The deceased is someone I know. Her daughter stays abroad. She went to church last Tuesday and had been there for some time because they were holding a programme that ended four days ago.

“She later stayed with one of her siblings who lives close to the church. It was while she was returning home around six in the morning that she was reportedly attacked.

“The suspects removed her clothes and underwear. They strangled her and also took her phone. Her ATM card and Bible were found at the scene,” the source said.

Another resident who identified himself only as Adeola described the incident as shocking, questioning why an elderly woman would be subjected to such brutality.

“She should be between 65 and 68 years old. Passersby found her body inside the bush and reported the matter at the police post in Ilogbo-Eremi.

“The police are aware of the incident and should be able to track the assailants through the woman’s stolen phone,” the resident said.

A community member, who also requested anonymity for fear of attack, described the area of the incident as notorious for violent crimes.

“The community is along the boundary between Lagos and Ogun states and is known for criminal activities. This is not the first time such a crime has happened here.

In fact, this would be about the fourth such incident reported in the area.

“The place is prone to violence, so people have to be careful. She was a grandmother, not a young woman. She was found naked, and it was when the police arrived that her body was covered. Her pants had been removed, which suggested she was raped,” the source added.

When contacted on Sunday, the spokesperson for the Lagos State Police Command, CSP Abimbola Adebisi, did not respond to calls or a WhatsApp message sent to his line at the time of this report.

This is not the first time a disturbing incident has been reported in Badagry. In November 2025, the corpse of an unidentified man was discovered in front of a filling station in the Seme area of the town.

The discovery was first reported by CityMood Badagry, a local social media news platform.

The deceased was found lying face-up, wearing what appeared to be a white top with black stripes, with parts of his chest and neck visibly exposed.

Continue Reading


 

 


 

 

 

 

Join Us On Facebook

Most Popular


Warning: Undefined array key "slug" in /home/porsch10/public_html/wp-includes/class-wp-theme-json.php on line 2117

Warning: Undefined array key "slug" in /home/porsch10/public_html/wp-includes/class-wp-theme-json.php on line 2117

Warning: Undefined array key "slug" in /home/porsch10/public_html/wp-includes/class-wp-theme-json.php on line 2117