The Nigerian National Petroleum Company Limited recorded N11.2tn in claims against the Federation in 2025 for costs and advances incurred on its behalf, including the protection of Nigeria’s oil and gas assets.
An analysis of the company’s 2025 audited financial statements showed that the amount represents a N4.07tn, or 57 per cent, increase from the N7.13tn energy security expense reported in 2024.
The figures underline the financial demands of securing oil and gas infrastructure amid crude theft, pipeline vandalism and other disruptions, even as NNPC recorded higher production and a 33 per cent rise in profit after tax.
However, the accounts clarify that the N11.2tn does not represent a new cash expenditure recorded during 2025, but comprises energy security-related costs and other receivables due from the Federation.
NNPC said no energy security expense was recognised in 2025 after outstanding amounts were reconciled against royalties, taxes and dividends due as of December 2024. The reconciliation was completed in September 2025.
The development comes against the backdrop of the Federal Government’s removal of petrol subsidies in 2023 and the subsequent deregulation of the downstream petroleum sector.
NNPC’s 2024 accounts had put energy security expenses at N7.13tn, up from N4.8tn in 2023, representing an increase of about N2.33tn, or 48 per cent.
The financial statements 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 accounts showed that energy security cost receivables stood at N8.67tn at the end of 2025, while other Federation receivables, including advances and security-related expenses, pushed the combined figure to N11.2tn.
