ActionAid Nigeria (AAN) has called on the Nigerian National Petroleum Company Limited (NNPCL) to immediately remit the full gains from fuel subsidy removal to the Federation Account, citing deepening poverty, economic hardship, and fiscal strain across the country.
The demand follows revelations in the World Bank’s Nigeria Development Update report, titled “Building Momentum for Inclusive Growth,” which disclosed that despite the complete removal of petrol subsidies as of October 2024, NNPCL only began transferring revenue to the Federation Account in January 2025 and has so far remitted just 50% of the expected gains.
In a strongly worded statement, AAN Country Director, Andrew Mamedu, described the withholding of these funds—estimated to total ₦10 trillion or 2.6% of GDP—as “unacceptable,” particularly in the context of Nigeria’s rising cost of living and over 104 million citizens living in multidimensional poverty.
“With inflation still high and the economic burden on ordinary Nigerians increasing, it is unconscionable that the full benefits of subsidy reform are not being transparently applied for national development,” Mamedu said. “If fiscal opacity continues, the reforms will only exacerbate inequality and social exclusion.”
While acknowledging international praise for Nigeria’s macroeconomic reforms, including exchange rate unification and tighter monetary policy, AAN stressed that these efforts must be accompanied by inclusive governance and accountability to be effective.
AAN outlined a list of urgent actions, including:
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A directive from the President, as Minister of Petroleum, for NNPCL to remit all subsidy savings in accordance with the 1999 Constitution and the Petroleum Industry Act 2021.
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Public transparency from the Federal Ministry of Finance and Office of the Accountant-General through quarterly reports on subsidy savings and expenditure.
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National Assembly intervention through public hearings and legislative review of NNPCL’s remittances and arrears.
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Investment of subsidy revenues in pro-poor programmes such as social protection, affordable transport, and local food systems.
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An independent, time-bound forensic audit of NNPCL with published results.
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Stronger oversight by the Fiscal Responsibility Commission to prevent further fiscal violations.
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Increased accountability from state governments in using their share of subsidy gains for education, healthcare, infrastructure, and social welfare.
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Active civic monitoring of subsidy revenue usage by citizens, civil society groups, and the media.
Mamedu concluded that Nigeria’s ambition for a $1 trillion economy by 2030 hinges on fiscal justice and inclusive growth, not just economic indicators.
“The full and timely transfer of subsidy gains is not merely an economic obligation—it is a test of political will, public trust, and national accountability,” he said.
