The Nigerian National Petroleum Company Limited (NNPC) has recorded N11.2tn in claims against the Federal Government for costs and advances incurred on behalf of the Federation, including expenses related to protecting the country’s oil and gas assets.
The figure was disclosed in NNPC’s 2025 audited financial statements and represents an increase of N4.07tn, or about 57 per cent, from the N7.13tn energy security expense recorded in 2024.
However, NNPC clarified that the N11.2tn should not be interpreted as fresh spending incurred entirely in 2025.
The company said the amount included outstanding energy security costs and other receivables from the Federation. The energy security-related receivable stood at N8.67tn at the end of 2025, while advances and other costs brought the total receivable to N11.2tn.
According to the financial statements, the costs were incurred under an approved arrangement that allows NNPC to spend on securing oil and gas infrastructure and charge the expenses to the Federation.
The expenses cover efforts to protect oil and gas facilities from crude oil theft, pipeline vandalism and other disruptions that have affected Nigeria’s petroleum production.
NNPC said no energy security expense was recognised in 2025 after it reconciled outstanding amounts with royalties, taxes and dividends owed to the Federal Government. The reconciliation was completed in September 2025.
Energy security expenses had previously risen from N4.8tn in 2023 to N7.13tn in 2024.
The disclosure comes as NNPC reports improved crude oil production following efforts to reduce oil theft and improve the security of major pipelines.
The company said crude oil and condensate production averaged 1.77 million barrels per day in 2025, the highest level in five years. Total crude oil and condensate production reached 565.8 million barrels, representing a five per cent increase from the previous year.
NNPC’s equity share of crude oil production also rose by 11 per cent to 223.7 million barrels, while natural gas production increased to 7.2 billion standard cubic feet per day.
NNPC Group Chief Executive Officer, Bayo Ojulari, said the improved security of major crude evacuation pipelines had contributed to the increase in production.
He said community-based surveillance, government intervention and the involvement of security agencies had helped stabilise the major pipelines.
Ojulari added that NNPC was deploying technology, including fibre optics and intrusion detection systems, to protect pipelines and wellheads from attacks and theft.
Despite the improvements, he said crude theft remained a challenge around smaller pipelines and wellheads located in difficult terrains.
The company also recorded a major reduction in pipeline maintenance costs, which fell from N149.48bn in 2024 to N13.81bn in 2025.
Meanwhile, NNPC reported a profit after tax of N7.2tn in 2025, compared with N5.4tn recorded in 2024.
The company’s revenue stood at N34.5tn, while earnings before interest, taxes, depreciation and amortisation rose to N18tn. Operating cash flow increased to N12.8tn, and NNPC declared a dividend of N5.8tn.
The national oil company said it is targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030.
It also plans to increase gas production to 12 billion standard cubic feet per day by 2030 and mobilise $60bn in investments across Nigeria’s upstream, midstream and downstream petroleum sectors.
NNPC’s financial statements did not provide a separate figure for petrol subsidy payments in 2025. Therefore, the N11.2tn receivable does not represent a direct measure of subsidy-related savings following the removal of the petrol subsidy in 2023.
