Chop and clean mouth

World Bank is wondering where Nigeria’s subsidy money is going

Good morning, Big Brains. Your faves are back again with another messy mess. This time, it’s the World Bank that’s holding their neck, and I’m here for it.

- Margaret

Word count: ~ 1,000
Reading time ~ 5 mins

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Let’s get into today’s edition:

• The World Bank is wondering where Nigeria’s subsidy money is going

• The U.S is proposing another tax that might complicate things for Nigerians

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The Big Deal

The World Bank is wondering where Nigeria’s subsidy money is going

Every day is for the thief (allegedly), but one day is for the owner. Brethren, the owner’s day has finally come. Have you asked yourself where the extra cash from the subsidy removal has been going? The World Bank has some answers for us and it’s going to piss you off a little…or a lot.

It turns out that even though the government officially stopped paying fuel subsidies in October 2024, the Nigerian National Petroleum Company Limited (NNPCL) didn’t start turning in the supposed savings until January 2025. And now that they’ve finally decided to hand over the extra funds, they’re only sending half of the money.

To answer the question on your mind, NNPCL is using the remaining 50% to “settle debts.” But even the World Bank doesn’t know what kind of debt it is paying off with that crazy amount of money.

If 50 + 50 isn’t giving 100, the World Bank says it isn’t buying it. It says that if citizens are already dealing with the economic struggles that came with the subsidy removal, all the money saved should be accounted for.

Why is this a big deal?

We went from buying fuel for ₦238.11 per litre in 2023 to paying over ₦900 for the same quantity today. The least the government can do is tell us where that money is going, especially since President Tinubu said the subsidy removal is supposed to grow the economy.

Instead of maintaining transparency, the President has been busy with his damage control efforts. In April 2025, he dissolved the NNPC board, sacking everyone, including Mele Kyari, the Group Chief Executive Officer, whom he replaced him with Bayo Ojulari. This month, the Economic and Financial Crimes Commission (EFCC) started investigating former and current NNPC officials (including Kyari). Apparently, there is a chance that these guys have been chopping and cleaning mouth with public funds and abusing their office.

The EFCC is still busy playing Sherlock Holmes, but the investigation alone is enough to make one question how honest these NNPC guys are.

If we’re paying through our teeth to buy fuel, we should at least be seeing some benefits. Typically, one would expect these funds to be redirected to important sectors like healthcare, agriculture or education. But right now, only our president can tell us where our money is going.

We don’t need to tell you how insane this is. But we’re keeping our fingers crossed for some answers from the federal government soon.

The U.S is proposing another tax that might complicate things for Nigerians

If you ask the Trump-led administration to say the first thing that comes to mind when it sees the letter T, it’s definitely going to be taxes or tariffs.

We’ve all been reading about US taxes for some time now but the new tax its lawmakers are proposing hits too close to home. They are currently pushing for a 5% excise tax on remittances sent abroad.

At first glance, this might not look like a serious problem but here’s how it concerns you: Nigeria relies heavily on remittances from the diaspora. In 2023 alone, the country generated $20 billion in remittances. In 2017, remittances made up 5.6% of the country’s Gross Domestic Product (GDP), slightly more than oil generated in the same year.

If this bill is passed, any remittance transfer will attract a tax “equal to 5% of the amount of such transfer.” It’ll be paid by the sender and remitted quarterly to the Secretary of the Treasury. Verified US citizens won’t have to pay it and can even claim it as a tax credit. Nigerians with green cards, on the other hand, would be required to pay the tax.

This could make sending money home more expensive for this set of Nigerians. Obviously, if that happens, we can expect the revenue Nigeria generates from remittances to drop. And that’s not a good thing in a year like 2025, when the country is looking for all the money it can get.

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This Week’s Big Question

“You get the chance to select the face of corruption in Nigeria, who are you picking?”

Oluwaseyi’s response - “Every EFCC official cause they turn blind when it’s time to see.”

You can also share your response here, and if it’s as interesting as Oluwaseyi’s, we’ll feature it in the next edition.

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Let’s settle this thing…

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Can You Make Up To 20 Words From “ESKELEBETIOLEBEBE” in 3 Minutes?: Share your results and tag us on social media.

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