The World Bank has disclosed that the Nigerian National Petroleum Company Limited (NNPCL) has been remitting only 50% of the revenue gains from the removal of the Premium Motor Spirit (PMS) subsidy to the Federation Account. This revelation is part of the latest Nigeria Development Update by the World Bank, which raises concerns about fiscal transparency and revenue management following the deregulation of the downstream petroleum sector. According to the report, titled "Building Momentum for Inclusive Growth," NNPCL generated N1.1 trillion in 2024 from crude sales and other income but remitted just N600 billion, leaving a shortfall of N500 billion. The report states that the remaining funds were used by the national oil company to settle outstanding debt obligations. In 2023, President Bola Tinubu received praise from international financial institutions after announcing the removal of the long-standing petrol subsidy—an action that tripled fuel prices overnight but was expected to save the government billions annually. The move, a key part of his broader economic reform agenda, aimed to redirect funds toward critical infrastructure and social programs. However, public backlash over soaring living costs delayed full deregulation, which only took effect in October 2024 following the launch of the Dangote refinery. Despite the subsidy’s removal, the World Bank noted that NNPCL delayed transferring the resulting revenue windfall, only beginning remittances to the Federation Account in January 2025—three months later. Since then, it has reportedly been remitting just half of the proceeds, using the rest to offset legacy debts. The report also projects that, assuming full remittance of the subsidy savings, 70% of the Federal Government’s 2025 revenue would come from oil sources, with the remaining 30% from non-oil sectors. “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. A further breakdown showed that NNPCL was the only laggard, remitting just N0.6tn to FAAC in 2024, down from N1.1tn in 2023. The World Bank attributed this drop to the implicit subsidy regime that persisted until the third quarter of 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.” 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. “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.”

Olayemi Cardoso, Governor of the Central Bank of Nigeria, has encouraged Nigerians to actively read and engage with policy documents to gain a clearer understanding of government initiatives. Speaking on Monday at the May 2025 edition of the Nigeria Development Update (NDU) launch by the World Bank in Abuja, Cardoso expressed concern over the low public interest in such materials. He revealed that only 2,000 people had downloaded the NDU document, despite its availability, and urged citizens to take better advantage of these resources. He said, “I think it’s a very useful document, and I really do want to commend the World Bank for taking the time and effort to put this out every six months. “However, I do feel that Nigerians perhaps don’t read enough. They don’t take advantage of, and policymakers by extension, of such useful analysis, which is readily available. “Why do I say so? Apart from many of the things we hear at times, I remember at one point in time we looked at the website, and we were appalled by the fact that barely 1,000 or 2,000 people had downloaded that particular document. “Very useful, very concise, and I would encourage as many as possible to look at that document. In some areas we are not necessarily on the same page, to be honest, but it’s still a useful framework to start to understand the complexities of the situation. So well done to the World Bank.”

The Minister of Power, Adebayo Adelabu, has emphasized that Nigeria needs at least $10 billion annually over the next 10 to 20 years to attain functional, reliable, and stable electricity. He made this known on Tuesday during the commissioning of the 600kW and 3MW Solar PV Power Plant at the Nigerian Defence Academy in Kaduna. Adelabu pointed out that longstanding foundational challenges must be addressed to ensure the effectiveness of such a significant investment. “Number one is the legislative and policy foundation, which this administration has achieved by signing the Energy Bill into law. “This bill has ensured the liberalisation and decentralisation of the power sector, enabling all levels of government—federal, state, and local—to legally and morally play roles in the power sector for the benefit of their citizens at sub-national levels. “This has granted autonomy to more than eleven states, with more expected to follow. These states can now participate in the power sector, from generation to transmission, distribution, and even metering.” “Secondly, we must address the infrastructure deficit, which has accumulated over the last 60 years due to a lack of maintenance and insufficient investment to revitalise our transmission grid.” The Minister also emphasised the need to bridge the over 50 per cent metering gap, stating that the Presidential Initiative aims to achieve this through the installation of 18 million meters over the next five years. He said the commissioning of the 600kW and 3MW Solar PV Power Plant at the prestigious Nigerian Defence Academy underscores the Federal Government’s resolve to tackle the electricity deficit. “These projects, implemented by the Federal Ministry of Power and the Rural Electrification Agency, not only underscore our commitment to improving electrification across key institutions in Nigeria, but they are also part of our broader mandate to diversify energy sources, expand access to clean and reliable electricity, and support critical sectors of national development, including education and security. “As an institution that combines academic rigour with military excellence, the Nigerian Defence Academy represents a strategic national asset that must be strengthened through sustainable infrastructure. “Powering the Academy with renewable energy aligns with our vision for a secure, self-reliant, and energy-efficient Nigeria. “It also reflects our commitment to President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises accelerated national development through universal energy access.” The Managing Director of the Rural Electrification Agency (REA), Abba Abubakar Aliyu, described the commissioning of the 2.5MW solar project as “a turning point in Nigeria’s journey towards energy access for learning institutions.” He noted that “the agency is not just commissioning a project, but rather commissioning social impact, research, and sustainable development.”

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, has announced plans to resume oil drilling activities in northern Nigeria. Speaking in an interview with BBC News Hausa on Monday, Ojulari confirmed the revival of the suspended project, which was originally launched over two years ago by former President Muhammadu Buhari along the Bauchi-Gombe border. He assured that the project, which had stalled for unspecified reasons, would now proceed under his leadership. The initial drilling efforts had sparked excitement among northerners hopeful of transforming the region into an oil-producing zone akin to the Niger Delta. Ojulari urged residents to remain calm, stating that the NNPC is set to return and continue the work. “We will continue with the oil drilling in Kolmani and other places. After the oil drilling, we will also ensure that we complete the gas pipeline from Ajaokuta to Kano,” Ojulari said. According to him, these projects will allow previously closed companies to reopen so they can continue operating and open new ones. “This will bring benefits to the region, which will lead to everyone benefiting because wealth will increase. Therefore, we must return and continue this project,” he said. Ojulari explained that resuming the oil drilling projects would enable previously shut-down businesses to reopen and pave the way for new ones to emerge. “This will benefit the region and, by extension, the entire country, as it will lead to increased wealth. That’s why we must return and continue this project,” he stated. It is worth recalling that in November 2022, former President Muhammadu Buhari inaugurated a crude oil drilling initiative in the Kolmani area, situated along the Bauchi-Gombe border in northeastern Nigeria—marking the first oil exploration in the northern region. Following that, the NNPCL announced plans to begin crude oil drilling in Nasarawa State, in north-central Nigeria, by March 2023. However, the project has since stalled, with no official explanation, prompting calls from Nigerians for clarity. During the interview, Ojulari, who noted that he is also from the North, expressed surprise at the reaction of some northerners to his appointment. He appealed for their support and prayers, urging both northerners and Nigerians at large to join him in moving the region and the nation forward.

Dangote Petroleum Refinery has further lowered the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, to N825 per litre from the previous N835, amid ongoing competition in the local market. Just last month, the 650,000 barrels-per-day refinery had reduced the price from N865 to N835 per litre. This latest price cut aims to offer customers greater value while strengthening the refinery’s dominant position in the domestic market.

The naira weakened to N1,630 per dollar in the parallel market on Friday, down from N1,625 on Thursday. Throughout the week, the currency showed a volatile trend, beginning with a drop to N1,610 per dollar. Compared to last weekend’s closing rate of N1,606, the naira has depreciated by 1.49 percent. Meanwhile, black market traders have blamed the continued depreciation on rising demand and limited dollar supply.

The Poultry Farmers Association of Nigeria has expressed concern over the drop in egg sales nationwide, attributing it to worsening economic conditions and reduced consumer purchasing power. The concern was voiced by the Jigawa State chapter, led by Mr. Hussaini Gumel, during a courtesy visit to Governor Umar Namadi at the Government House in Dutse on Thursday evening. According to Gumel, “Since the removal of fuel subsidy, our industry has been hit hard. Many Nigerians can no longer afford eggs, and our sales have plummeted,” attributing the decline in sales to the increasing economic hardships faced by many Nigerians. The poultry farmers’ leader noted that the situation is further exacerbated by the rising costs of production, including feed and other inputs. “We’re struggling to keep our businesses afloat,” Mr. Gumel said. The association’s members, comprising both men and women, face numerous challenges, particularly in accessing affordable poultry feeds. “It’s disheartening that chicken feeds are significantly cheaper in Jos, Plateau State, compared to Jigawa and many other states. This disparity has made it difficult for poultry farmers in Jigawa to maintain profitability,” Gumel lamented. The current economic situation has further exacerbated the challenges, with many Nigerians struggling to afford chicken and eggs due to limited financial resources. “There’s no market for our products, and the lack of sufficient money in circulation among people is alarming,” Mr. Gumel said, warning that the business is on the brink of collapse. Decrying further, the chairman stated that “the poultry farmers also lack essential infrastructure, such as refrigerators and cooling devices, to preserve their products in the hot weather. “We’re appealing for government intervention to prevent losses due to damaged products,” Mr. Gumel urged, emphasizing the need for support to maintain the quality of their products. He also highlighted the need for training and capacity-building programs, particularly for women involved in the poultry business, saying, “We need government support to facilitate training and empower our members, especially women at home who are engaged in poultry farming.”

The Federal Government of Nigeria has fully settled its $3.4 billion COVID-19 loan obtained from the International Monetary Fund (IMF). As a result, Nigeria has been removed from the IMF’s credit outstanding list for the period of May 1 to May 6, 2025. According to the latest data from the international lender, at least 90 countries owe a combined $117.79 billion—Nigeria is no longer among them. The IMF disbursed Special Drawing Rights (SDR) amounting to 2.45 billion to Nigeria in 2020 as part of the Rapid Financing Instrument (RFI) during the COVID-19 crisis. SDRs are a form of international reserve currency created by the IMF. Repayment was completed over a five-year period: SDR613.62 million in 2023, SDR1.22 billion in 2024, and another SDR613.62 million in 2025. This fulfilled the repayment terms under the RFI. Former Presidential aide Tolu Ogunlesi, who served during the loan period, confirmed via Twitter on Thursday that the total SDR2.45 billion repayment marks the full clearance of the $3.4 billion IMF loan.

The naira weakened yesterday, falling to N1,610 per dollar in the parallel market, down from N1,605 on Tuesday. Likewise, in the Nigerian Foreign Exchange Market (NFEM), the naira depreciated to N1,612 per dollar. According to data from the Central Bank of Nigeria (CBN), the official exchange rate climbed from N1,609 per dollar on Tuesday, reflecting a N4 loss in value. As a result, the gap between the parallel market and NFEM rates narrowed to N3 per dollar, compared to N4 per dollar the previous day.

Concerns mounted over the implementation of Nigeria’s 2025 budget over the weekend as oil prices fell further to $59 per barrel, down from over $70, marking the lowest level this year. The current price represents a 15.7% drop from the year’s peak. Investigations also revealed that the global oil market has taken a hit due to increased production and exports from various countries. This comes as OPEC and its allies, known as OPEC+, begin phasing out voluntary output cuts by boosting production by 411,000 barrels per day starting in May.