The Nigerian National Petroleum Company Limited invested N473.8bn in gas infrastructure projects through its subsidiary, NNPC Gas Infrastructure Company Limited, in 2025, according to the company’s 2025 financial statements.
The funding was used to meet financial obligations for the proposed Nigeria-Morocco Gas Pipeline, support an equity investment in Anoh Gas Processing Company and finance the Ajaokuta-Kaduna-Kano gas pipeline.
The financial report showed that N25.7bn in interest on the facility was still outstanding as of December 31, 2025, while N14.4bn of the loan remained undrawn.
The Nigeria-Morocco Gas Pipeline, also known as the African Atlantic Gas Pipeline, is planned to transport Nigerian gas through several West African countries to Morocco, with a potential connection to European markets.
The proposed pipeline route will run through countries including Benin, Togo, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, The Gambia, Senegal and Mauritania before reaching Morocco.
The project is expected to expand regional gas supply, support industries and create a new route for Nigerian gas exports. However, its development will require significant funding and coordination among participating countries and companies.
NNPC’s financial statements also showed a sharp increase in lending to related companies in 2025. Loans to related parties at the company level rose to N939.25bn from N185.54bn in 2024, representing an increase of about 406 per cent.
The balance included N211.64bn for NNPC Energy Services Limited, N77.59bn for Kaduna Refining and Petrochemical Company, N29.58bn for Port Harcourt Refining Company, N113.33bn for Warri Refining and Petrochemical Company and N485.17bn for NNPC Gas Infrastructure Company.
NNPC also provided N133.5bn to the Kaduna refinery for invoice payments and tax obligations linked to its Quick Fix Maintenance project. N56bn of that facility was still undrawn at the end of 2025.
The Warri refinery received N104.8bn to cover tax payments connected to its maintenance programme, while Port Harcourt Refining Company received N26.07bn to settle outstanding invoices under a nine-month operations and maintenance contract.
In addition, NNPC’s outstanding loan to NNPC Energy Services stood at N211.6bn at the end of the year. The funds were earmarked for drilling and seismic activities, including the Keana campaign and re-entry operations in the Chad Basin.
Commenting on NNPC’s 2025 financial performance, petroleum economist and Professor Emeritus at the LSU Energy Institute, Wumi Iledare, said the company’s reported N7.2tn profit should not be viewed on its own as evidence of sustainable commercial performance.
Iledare said greater attention should be paid to the productivity of NNPC’s assets, its cash flow, production levels, reserves replacement and how effectively it deploys capital.
He also raised concerns over NNPC’s reported N11.2tn receivable linked to energy-security expenditure, noting that delayed payments could affect the company’s ability to maintain its operations despite its reported profit.
According to him, NNPC needs clearer reporting on its receivables and stronger payment arrangements to ensure that accounting profits are converted into actual cash.
Iledare further said any future initial public offering by NNPC should come after the company establishes a clear asset base, reliable cash generation and stronger capital discipline.
He said the broader measure of NNPC’s transformation should be whether the company can turn Nigeria’s petroleum resources and productive assets into lasting economic value while maintaining transparency and accountability.
