KEY POINTS
- NNPC spent N11.2trn securing oil and gas assets in 2025.
- Crude oil and petroleum product revenues declined.
- Natural gas revenue rose to N6.15trn, while gas flare payments reached N499bn.
The Nigerian National Petroleum Company, NNPC, Limited spent N11.2 trillion to protect Nigeria’s oil and gas assets in 2025 on behalf of the federal government, according to its latest audited financial statements.
The expenditure, recorded as part of the company’s other receivables from the federation, represents costs incurred to safeguard the country’s oil and gas infrastructure under an approved financial arrangement between NNPC and the federal government.
The 2025 audited financial report, obtained by TheCable, showed that the expenditure is recoverable from the federal government as energy security costs. The arrangement allows the national oil company to finance security operations to protect critical oil and gas infrastructure and subsequently seek reimbursement from the federation.
Under the framework, the government is expected to refund the company for the expenses incurred in securing the country’s energy assets.
No petrol subsidy expenses recorded in 2025
The financial statements also showed that NNPC did not recognise any new energy security expenses, commonly associated with petrol subsidy payments, in 2025, compared with N7.13 trillion recorded in the previous year.
However, the company reported N8.9 trillion in defrayed energy security costs carried over from 2024.
NNPC explained that the outstanding energy security cost receivables were reconciled with relevant government agencies and offset against royalties, taxes and dividends owed as of December 2024.
The reconciliation exercise was completed and recorded in September 2025, allowing the company to settle the outstanding obligations through adjustments against amounts due to the federation.
The disclosure provides further insight into the financial relationship between NNPC and the federal government, particularly regarding the funding of energy security and the settlement of outstanding obligations.
NNPC generated N34.52 trillion in revenue from contracts with customers in 2025, covering crude oil, petroleum products, natural gas, electricity and services.
Despite the substantial revenue generated during the year, the company recorded declines in earnings from crude oil and petroleum product sales.
Revenue from crude oil sales fell to N25.39 trillion in 2025, down from N29.2 trillion recorded in 2024.
Similarly, revenue from petroleum product sales dropped significantly to N2.1 trillion, compared with N9.68 trillion in the preceding year.
According to the report, petroleum product revenue was generated from the sale of petrol, dual-purpose kerosene, automotive gas oil, naphtha, lubricants and other related products.
The decline in these two revenue streams contrasted with the increase recorded in natural gas earnings, which provided a growing source of revenue for the national oil company.
