Some Netizens have taken to social media to criticise the Nigerian National Petroleum Company Limited (NNPCL) under the watch of its Group Chief Executive Officer, Bayo Ojulari for recording claims totalling ₦11.2trillion from the Federation in 2025 as costs and advances incurred including expenses related to securing the country’s oil and gas assets, as shown in its 2025 audited financial statements.
According to the statement, the ₦11.2trillion in receivables represented costs and advances incurred on behalf of the Federation, an amount that is ₦4.07trillion, or about 57 per cent, higher than the ₦7.13trillion energy security expense recognised in 2024.
The figure highlights the substantial financial burden associated with protecting oil and gas infrastructure against crude oil theft, pipeline vandalism and other disruptions, even as the national oil company reported higher production and a 33 per cent increase in profit after tax.
The audited accounts, however, show that the ₦11.2trillion figure represents energy security costs and other receivables from the Federation, rather than a straightforward cash expenditure newly recognised in 2025.
The company stated that no energy security expense was recognised in 2025, compared with ₦7.13trillion in 2024, following a reconciliation of outstanding amounts against royalties, taxes and dividends due as of December 2024. The reconciliation was completed in September 2025.
According to NATIONAL WAVES findings, Netizens scrutinised the transactions and lambasted the federal government for removing subsidy, thereby making Nigerians pay more for petrol and resulting to hardship and at the same time paying such huge amount to secure the country’s oil and gas assets.
In a video seen by NATIONAL WAVES a netizen said “During late President MuhammuduBuhari’s tenure a sum of over ₦11trillion was spent on subsidy for eight years and we were buying fuel between ₦187 and ₦250. Now President Tinubu came and said subsidy is gone and we are buying fuel for over ₦1300. NNPC now came and said it has spent over ₦11 9trillion on what it called ” Energy security expense” in two years between 2023 and 2024. The “Energy security expense” according to the NNPC is the cost of ensuring that Nigerians continue to have access to fuel and other energy products even when supplying them is expensive or result to financial loses. Is that not like fuel subsidy?”
The figures come amid the Federal Government’s removal of the petrol subsidy in 2023 and subsequent deregulation of the downstream petroleum market.
Recall that NNPC’s 2024 accounts recorded energy security expenses of ₦7.13 trillion compared with ₦4.8 trillion in 2023. That represented an increase of approximately ₦233trillion, or 48 per cent, in the amount reported for the two years.
The financial report explained, “Other receivables from federation relates to advance payment to Federation and the security costs incurred in protecting the oil and gas assets. This is under the framework of approval between the Government of Nigeria and the Group to incur security costs and charge same to the Federation.”
The financial statements showed that the group’s energy security cost receivable stood at ₦8.67trillion at the end of 2025, while other receivables from the Federation, including advances and security-related costs, brought the total to ₦11.2trillion.
According to Note 24.2 of the accounts, other receivables from the Federation relate to advance payments to the government and costs incurred in protecting oil and gas assets.
The company explained that the arrangement operated under an approved framework between the Federal Government and NNPC, allowing the national oil company to incur security costs and charge them to the Federation.
The accounts stated, “During the year, no energy security expense was recognised (2024: ₦7.13 trillion). Following a reconciliation exercise with relevant government agencies, the Energy Security Cost receivables were netted off against royalties, taxes, and dividends due as at December 2024. The reconciliation exercise concluded in September 2025.”
The disclosure means the ₦8.67 trillion energy security balance should not be interpreted as fresh spending incurred entirely in 2025. Rather, it reflects the outstanding balance carried in the accounts before its reconciliation against government obligations.
The company said ‘The issue is significant because oil theft, pipeline attacks and production disruptions have historically constrained Nigeria’s ability to maximise crude oil output and earn foreign exchange from petroleum exports’.
NNPC’s financial results showed that crude oil and condensate production averaged 1.77 million barrels per day in 2025, the highest level in five years, while natural gas production reached a three-year high of 7.2 billion standard cubic feet per day.
The company said, “Oil and condensate production totalled 565.8 million barrels, up 5 per cent, with NNPC Limited’s equity share increasing 11 per cent to 223.7 million barrels.
“Natural gas production reached 2,606.2 billion standard cubic feet, up 9 per cent, while its equity share rose 11 per cent to 1,154.9 billion standard cubic feet.”
Despite the improved output, the company’s accounts showed that pipeline maintenance costs fell sharply to ₦13.813billion in 2025 from ₦149.478bn in 2024, down by ₦135.665billiob, or 90.8 per cent.
