Amidst rising poverty and fiscal crisis, ActionAid Nigeria has criticised the Federal Government over the delay and partial remittance of fuel subsidy removal gains by the Nigerian National Petroleum Company Limited (NNPCL).

The Social Justice Organisation, while quoting from the World Bank’s Nigeria Development Update (NDU) titled “Building Momentum for Inclusive Growth”, noted that despite the full removal of petrol subsidies as of October 2024, NNPCL only began transferring revenues to the Federation Account in January 2025 and has, since then, remitted only 50% of the gains.

The Country Director of ActionAid Nigeria, Andrew Mamedu Igbemo, lamented that withholding of critical national revenue amid worsening economic hardship is unacceptable.

He pointed out that estimates by the World Bank show that the gains should amount to roughly 2.6% of Nigeria’s GDP in 2024, which is approximately ₦10 trillion.

He said, “Withholding half of this revenue from the Federation Account directly undermines the constitutional revenue-sharing framework and denies both the federal and subnational governments vital resources needed to provide basic public services and reduce poverty.”

He stressed that given the high inflation rate, high cost-of-living crisis, and over 104 million Nigerians living in multidimensional poverty, it is unconscionable that the full benefits of subsidy reform have not been transparently and equitably applied for national development.

ActionAid Nigeria warned that unless this fiscal opacity is urgently addressed, the reforms intended to stabilise the economy will only deepen inequality and exclusion.

“We note the World Bank’s commendation of Nigeria’s macroeconomic reforms – including exchange rate unification and tighter monetary policies – but assert that economic stability without inclusive governance and justice for the poor is unsustainable,” they stated.

They, however, called on the President, in his capacity as Minister of Petroleum Resources, to direct the NNPCL to immediately remit the full revenue gains from fuel subsidy removal into the Federation Account, in compliance with the 1999 Constitution and the Petroleum Industry Act 2021.

They also called on the Federal Ministry of Finance and the Office of the Accountant-General to ensure full transparency in the management and distribution of subsidy savings.

“The National Assembly must exercise its oversight function by summoning NNPCL leadership for a public hearing and conducting a comprehensive review of arrears, subsidy payments, and remittances,” ActionAid said.

It urged the government to prioritise channelling these revenues toward pro-poor investments, including expanding the national social protection register, improving access to affordable public transport, and supporting local food systems.