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World Bank Unveils Lack Of Transparency In NNPC’s Financial Reporting On Fuel Subsidy-Removal (Full Details)

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3 years ago

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The World Bank has revealed that the Nigeria National Petroleum Corporation Limited lacks transparency regarding the financial gains from the removal of fuel subsidies, including subsidy arrears deductions and the impact on federation revenues……CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

 

 

 

This disclosure was made in the December 2023 edition of its Nigeria Development Update titled “Turning The Corner (from reforms and renewed hope, to results).” Minister of Finance and Coordinating Minister of Economy, Wale Edun, has expressed the government’s readiness to scrutinize the revenue flow from the NNPCL.

While the World Bank acknowledges visible revenue gains from exchange rate reforms, it calls for more clarity on oil revenues, particularly the fiscal benefits resulting from Petroleum Motor Spirit (PMS) subsidy reforms. The institution points out a lack of transparency in the NNPCL’s financial gains from subsidy removal, ongoing subsidy arrears deductions, and the unclear impact on federation revenues.

The World Bank emphasizes that the net oil revenue gains for the federation are lower than expected following the fuel subsidy removal. It notes that the fuel subsidy, costing the federation about N380 billion monthly, should have led to an increase in net oil revenues once removed.

Furthermore, concerns are raised about the potential reemergence of an implicit fuel subsidy, with petrol prices showing limited changes despite exchange rate fluctuations and global oil price variations. The World Bank suggests that the reform of fuel subsidies should enable the NNPCL to settle arrears and contribute fully to joint venture operation costs, thereby fostering gradual oil production growth.

At the presentation of the report, Coordinating Minister of the Economy, Edun, acknowledges the fiscal benefits of subsidy removal but highlights challenges such as debt funding and a high fiscal deficit. He anticipates increased scrutiny on oil revenue, production, and a commitment to raising oil production.

The report also mentions concerns about the opacity of the NNPCL’s dealings, echoing sentiments from former CBN Governor Sanusi Lamido Sanusi. The World Bank urges enhanced transparency in the NNPCL’s reporting of profits and oil revenues remitted to the Federation Account.

The report indicates a risk of the Federal Government still bearing fuel subsidy costs, leading to lower-than-expected net oil revenues. The World Bank estimates that the cost-reflective market price of petrol should be around N750/litre, emphasizing the need for the government to clarify how pump prices are fixed.

Despite acknowledging the challenging economic adjustments post-subsidy removal, the World Bank believes that successful implementation of reforms will improve Nigeria’s growth prospects, with the economy benefitting from increased fiscal space and stronger growth potential. The report underscores the importance of transparency, investment, and productivity for sustained economic development.

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Pressure Mounts At The NBA: Badejo-Okusanya Leads While Aspirants Question Integrity Of The Ballot!

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13 hours ago

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July 18, 2026

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Senior Advocate of Nigeria (SAN), Oyinkansola Badejo-Okusanya, has taken a commanding lead in the early results of the Nigerian Bar Association (NBA) presidential election.....KINDLY READ THE FULL STORY HERE▶

Election Results and Status

  • Early Standings: As of 11:33 a.m. on Saturday, with 11,600 votes counted, Badejo-Okusanya led with 4,860 votes (41.77%).

  • Rival Performance: Lateef Omoyemi Akangbe (SAN) followed with 3,851 votes (33.10%), and Aare Olumuyiwa Akinboro (SAN) trailed with 2,924 votes (25.13%).

  • Election Status: The final result has not yet been declared.

Election Disruptions and Controversy

  • Cyberattack: The start of voting was delayed from the scheduled midnight commencement after the Electoral Committee of the Nigerian Bar Association’s electronic platform suffered a coordinated cyberattack by external actors.

  • Integrity Assurances: Despite the disruption, the committee stated that the platform was restored, voting proceeded, and the integrity of the process remained protected.

  • Leadership Allegations: NBA President, Afam Osigwe (SAN), has dismissed recent allegations that he attempted to rig or influence the election, asserting that the Electoral Committee operates independently of his office.

  • Credibility Concerns: Leading up to the poll, various stakeholders raised concerns regarding the credibility of the process, including calls for postponement and demands for mandatory National Identification Number verification. The NBA maintained that only the Electoral Committee is constitutionally authorized to conduct the election and denied all claims of leadership interference.

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‘I Was Robbed!’ Peter Obi Drops Election Bombshell, Declaring The Poll Was Rigged!.

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13 hours ago

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July 18, 2026

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Nigerian Democratic Congress (NDC) presidential candidate Peter Obi has asserted that the 2027 general election will serve as a definitive contest between the Nigerian people and the administration of President Bola Tinubu.....KINDLY READ THE FULL STORY HERE▶

  • Election Claims: Obi reiterated his belief that he was the rightful winner of the 2023 presidential election, maintaining that his victory was denied through electoral manipulation rather than a true reflection of the voters’ choice.

  • Call for Change: He stated that the public is determined to see change, suggesting that the next election will provide Nigerians with another opportunity to alter the country’s direction.

  • The Missing Element: Arguing that current sacrifices made by citizens have not yielded improved living conditions, Obi identified the absence of effective leadership as Nigeria’s primary challenge.

  • Motivation and Vision: Obi clarified that his ambition is not driven by personal desperation to hold office, but by a commitment to building a functional society where all children—regardless of family wealth or background—have hope and opportunities to succeed.

  • Voter Empowerment: Expressing confidence in the electorate, Obi noted that voters have learned from previous experiences and will find ways to ensure their choices count in the upcoming 2027 cycle.

Following the 2023 election, the Independent National Electoral Commission (INEC) officially declared President Tinubu the winner, and subsequent legal challenges initiated by Obi were unsuccessful.

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Emotional Reunion: Peter Obi Offers Condolences To Fayose In Touching Tribute To Late Wife!.

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16 hours ago

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July 18, 2026

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Peter Obi, the presidential candidate of the Nigeria Democratic Congress (NDC), recently conducted a condolence visit to businessman and social commentator Isaac Fayose following the passing of his wife. During this visit, the former Anambra State governor extended his sympathies to Fayose and his family and offered prayers for the deceased.....KINDLY READ THE FULL STORY HERE▶

This visit follows a period of public attention surrounding Fayose, who was recently seen meeting with Seyi Tinubu, the son of President Bola Tinubu. While some observers suggested this meeting indicated a shift toward the All Progressives Congress (APC), Fayose clarified that the interaction did not signify a change in his political stance or an endorsement of the ruling party.

Observers have noted these visits—which also included a recent condolence call to former Minister of Transportation Rotimi Amaechi regarding his mother’s death—as part of Obi’s broader effort to connect with political associates and public figures during times of grief, regardless of their political differences.

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