World Bank Accuses NNPC of Lying About Earnings, Company Fires Back, Releases Figures
- The World Bank has accused the Nigerian National Petroleum Company Limited (NNPC) of lying about its earnings
- The bank said NNPC earnings extend to the subsidy arrears that are still being deducted
- NNPC, however, said it remitted about N5.4 trillion to the nation’s coffers in October alone
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The World Bank has said the Nigeria National Petroleum Company Limited needs to be more transparent about its financial gains from petrol subsidy removal.
The bank said the earnings extend to subsidy arrears that are still being deducted and the impact of subsidy on Nigeria’s revenue.
Source: UGC
FG discloses plans to scrutinise NNPC
Punch reports that the World Bank disclosed this in its Nigeria Development update, December 2023 edition.
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The development comes as the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that the federal government was ready to examine NNPC's revenue.
The World Bank said while revenue gains from the FX reforms are open, more explanations are required, including the fiscal benefits from petrol subsidy reforms.
The bank said:
“Except for the exchange rate-related increases, however, there is a lack of transparency regarding oil revenues, especially the financial gains of the Nigeria National Petroleum Corporation from the subsidy removal, the subsidy arrears that are still being deducted, and the impact of this on Federation revenues.”
It explained that gains in net oil revenue were lower than they should have been, considering what the petrol subsidy removal should have added to the accounts.
NNPC boss discloses October earnings
But in a response to lawmakers, Mele Kyari, the NNPC Group Chief Executive Officer, said the NNPC delivered N4.5 trillion to the federal account in October 2023 alone.
The NNPC boss disclosed this to the lawmakers on December 13, 2023, at the National Assembly complex in Abuja.
Kyari said.
“I am glad to inform you Mr. Chairman and Distinguished Senators, that as of October, we were able to deliver N4.5 trillion into the federation account as a company to this country in 2023.”
The Nation reports that Kyari said the national oil firm is striving towards transparency in its financials.
Kyari, who President Bola Tinubu just reappointed, said that NNPC is a creation of the National Assembly, requiring that it operates transparently and profitably in line with provisions of the Petroleum Industry Act (PIA) to create value for shareholders.
Analyst flays NNPC over opaqueness
Before the NNPC was restructured into a private entity, it was always accused of opaqueness.
Energy policy analyst Adeola Yusuf said it was about time the company shed its old skin and embraced transparency.
He said:
“I don’t know what the problem is. The company has been accused of a lack of transparency for as long as I can remember. The World Bank might be right. NNPC needs to be checked.”
World Bank speaks on the real pump price of petrol in Nigeria without subsidy
Legit.ng reported that The World Bank has hinted that the Tinubu-led administration has partially reintroduced petrol subsidy payments.
According to Alex Sienaert, the global bank's lead economist for Nigeria, the current petrol price in Nigeria at 650 does not reflect a subsidy-free regime.
He made this known during his presentation of the Nigeria development update report, the December 2023 edition.
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Source: Legit.ng
