Company says no new energy security expense was recognised in 2025, compared with N7.13tn recorded the previous year…..
The Nigerian National Petroleum Company Limited incurred N11.2tn in costs associated with protecting Nigeria’s oil and gas assets in 2025, according to the company’s audited financial statements.
The expenditure was captured under “other receivables from federation” and relates to advance payments made to the Federal Government as well as expenses incurred by the national oil company in securing the country’s petroleum assets.
NNPC said the spending was undertaken under an approved framework between the Federal Government and the company, allowing it to incur security-related costs and subsequently recover the funds from the federation as energy security costs.
The arrangement means the Federal Government is expected to reimburse NNPC for the expenses incurred in protecting the nation’s oil and gas infrastructure.
The company, however, said it did not recognise any new “energy security expense” during the 2025 financial year, a category commonly associated with petrol subsidy payments.
This compares with N7.13tn recorded as an energy security expense in 2024.
Despite the absence of a new expense in 2025, the financial statements showed that NNPC carried a defrayed energy security cost of N8.9tn from the previous year.
The company said the outstanding amount was subsequently reconciled with relevant government agencies.
“Following a reconciliation exercise with relevant government agencies, the Energy Security cost receivables was netted off against royalties, tax, and dividends due as at December 2024. The reconciliation exercise was recorded in September 2025,” NNPC said.
The financial report also showed that NNPC generated N34.52tn in revenue from contracts with customers during 2025.
The revenue covered crude oil, petroleum products, natural gas, electricity and various services provided by the company.
Crude oil remained the largest contributor, although revenue from the segment declined during the year.
NNPC generated N25.39tn from crude oil sales in 2025, compared with N29.2tn recorded in 2024.
Revenue from petroleum products also dropped sharply, falling to N2.1tn from N9.68tn in the preceding year.
The company said the petroleum products category covered the sale of petrol, dual-purpose kerosene, automotive gas oil, naphtha, lubricants and other related products.
Natural gas revenue, however, moved in the opposite direction, increasing to N6.15tn in 2025 from N5.2tn a year earlier.
The company also recorded higher revenue from electricity sales to the Nigeria Bulk Electricity Trading Plc.
Power revenue rose to N11.8bn in 2025, compared with N9.4m recorded in 2024.
Revenue from services declined during the period, falling to N729.33bn from N980.45bn.
The services category included seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs.
The financial statements further revealed that NNPC paid N499bn in gas flare penalties and fees during the year.
The company explained that gas flare fees represent statutory charges imposed on gas flaring within limits approved by the Nigerian Upstream Petroleum Regulatory Commission under Section 104 of the Petroleum Industry Act.
Gas flare penalties, on the other hand, apply to flaring above the permitted regulatory limits.
The figures provide an insight into the scale of NNPC’s financial obligations in securing petroleum assets and managing its upstream operations, even as revenue from some of its major business segments declined during the year.
