NNPC Spends ₦11.2tn on Oil Asset Security in 2025

The Nigerian National Petroleum Company Limited (NNPC Ltd) says it incurred about ₦11.2 trillion in costs related to the protection of Nigeria’s oil and gas assets in 2025 on behalf of the Federal Government.

The disclosure was contained in the company’s audited financial statements for the 2025 financial year.

According to the report, the expenditure formed part of amounts recorded as receivables from the Federation. The funds covered expenses incurred by NNPC in connection with the security and protection of petroleum assets across the country.

The company explained that the spending was carried out under an arrangement with the Federal Government under which NNPC could incur certain security-related costs and subsequently recover the money from the Federation.

The disclosure comes as Nigeria continues to deal with challenges affecting crude oil production, including oil theft, pipeline vandalism and attacks on petroleum infrastructure.

Security of oil-producing facilities and transportation infrastructure remains a major issue for the industry because disruptions can reduce production and affect government revenue.

NNPC’s financial statements also showed changes in expenditure related to energy security during the year.

The company reported that no new energy security expense was recognised in 2025, compared with about ₦7.13 trillion recorded in 2024.

However, NNPC said an ₦8.9 trillion energy security cost from the previous year was subsequently reconciled with amounts owed to the Federation, including royalties, taxes and dividends.

The reconciliation was completed in September 2025 following an exercise involving relevant government agencies.

Meanwhile, NNPC recorded ₦34.52 trillion in revenue from contracts with customers during the 2025 financial year.

Crude oil sales accounted for the largest portion of the revenue, generating approximately ₦25.39 trillion during the period.

Revenue from natural gas also increased to about ₦6.15 trillion, compared with approximately ₦5.2 trillion recorded in the previous year.

Petroleum product sales contributed about ₦2.1 trillion, while NNPC generated additional revenue from services provided across its operations.

The company said its service-related revenue included income from seismic operations, marine services, engineering activities and gas transmission tariffs.

NNPC also reported payments of about ₦499 billion in gas flare penalties and related fees during the year.

The financial disclosures provide an overview of the scale of funds handled by NNPC in managing Nigeria’s petroleum assets and meeting obligations connected to the Federal Government.

The company remains a key player in Nigeria’s oil and gas industry, with its financial performance closely linked to crude oil production, petroleum product sales, natural gas operations and the management of the country’s petroleum resources.