Nigeria’s House of Representatives has ordered an investigation into allegations that the Nigerian National Petroleum Company Limited (NNPCL) withheld ₦8.48 trillion as petrol subsidies between 2020 and 2023. This inquiry, prompted by reports from the Revenue Mobilisation Allocation and Fiscal Responsibility Commission, will also address claims by the Nigeria Extractive Industries Transparency Initiative (NEITI) that NNPCL failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.
The directive, issued during Wednesday’s plenary, mandates the House Committees on Finance and Petroleum (Upstream and Downstream) to examine the cumulative revenue shortfalls and report back. The resolution coincided with the adoption of the 2025–2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), setting the stage for President Bola Tinubu’s presentation of the 2025 Appropriation Bill.
Central to the debate was the proposed $75 per barrel oil benchmark for 2025, which sparked division among lawmakers. Minority Leader Kingsley Chinda argued for a higher benchmark, citing oil prices surpassing $85 per barrel in early 2024. However, Finance Committee Chair Abiodun Faleke defended the projection as “responsible,” noting that global market volatility necessitated caution.
Other contentious issues included optimistic projections for crude oil production, set to rise from 1.78 million barrels per day (mbpd) in 2024 to 2.35 mbpd by 2027, and the proposed exchange rate of ₦1,400 to the dollar. Lawmakers also debated inflation targets, with concerns raised over the economic impact of Nigeria’s reliance on fossil fuel revenues amid a global shift toward renewable energy.
The adopted framework includes ambitious government spending plans of ₦47.9 trillion for 2025, backed by ₦9.22 trillion in domestic and foreign borrowings. Despite criticism over these projections, House leaders described the MTEF as a “working document” subject to review.
As Nigeria grapples with fiscal pressures and an urgent need for economic diversification, the outcome of these debates and investigations will shape the country’s budgetary and policy priorities in the years ahead.
