The World Bank has called on the Nigerian government to fully transfer all revenue gains from fuel subsidy removal to the Federation Account, citing concerns over incomplete remittances by the Nigerian National Petroleum Company Limited (NNPCL).

In its latest Nigeria Development Update (NDU), launched in Abuja, the Bank noted that despite the official removal of the subsidy in October 2024, NNPCL only began remitting revenue in January 2025—and only half of the gains.

The report, titled Building Momentum for Inclusive Growth, stressed the need to resolve outstanding net arrears and direct all fuel savings to the Federation Account to promote sound fiscal management.

It also warned that overly optimistic revenue assumptions in the 2025 budget could lead to a wider fiscal deficit, calling for close monitoring and sustainable capital spending.

The report projected that inflation, though currently high, would average 22.1 per cent in 2025 due to a firm monetary policy stance.

Acting World Bank Country Director, Taimur Samar, said Nigeria had a historic opportunity to redirect spending towards infrastructure, social protection, and human capital.

World Bank Lead Economist, Alex Sienaert, lauded recent macroeconomic reforms but urged further steps to deepen inclusive growth and job creation.

Finance Minister Wale Edun reiterated the government’s commitment to fiscal transparency and disclosed that a forensic audit of NNPCL was underway. His counterpart, Budget Minister Abubakar Bagudu, disagreed with the World Bank’s concerns about the 2025 budget, stating the projections were realistic based on Nigeria’s capacity.

Central Bank Governor Yemi Cardoso added that the apex bank remained focused on sustaining macroeconomic stability to enable long-term growth.