NNPC says it spent N11trn to protect oil assets in 2025 on behalf of FG

The Nigerian National Petroleum Company (NNPC) Limited says it spent N11.2 trillion in 2025 to protect oil assets on behalf of the federal government.

The cost is reflected in the company’s 2025 audited financial report, seen by TheCable on Wednesday, as “other receivables from federation” relating to “advance payments to the federation and costs incurred to secure the country’s oil and gas assets”.

Receivables are amounts owed to a company by customers or the government for goods or services delivered on credit.

This, the NNPC said, is under an approved framework “between the federal government and the group”.

This means that the federal government is expected to refund the NNPC the money the oil firm spent protecting oil assets.

According to the document, the framework allows the NNPC to incur security costs to protect the country’s oil and gas assets and recover the expenses to the federation as energy security costs.

The NNPC also said no “energy security expense”, commonly known as petrol subsidy, “was recognised” during the year, compared with N7.13 trillion incurred in the previous year.

The report, however, showed that the company incurred a defrayed energy security cost of N8.9 trillion, which was carried over from 2024.

“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 added.

According to the report, the oil company generated N34.52 trillion in revenue from “contracts with customers” in 2025, covering crude oil, petroleum products, natural gas, power, and services.

The NNPC reported a N25.39 trillion in revenue from crude oil sale in 2025, down from N29.2 trillion recorded from the revenue stream in 2024.

The oil firm also earned N2.1 trillion from petroleum product sale, compared with N9.68 trillion in 2024.

The NNPC said revenue from petroleum products came from the sale of petrol, dual-purpose kerosene (DPK), automotive gasoline oil (AGO), naphtha, lubricants, and other related products.

The report also showed that natural gas revenue rose to N6.15 trillion in 2025, from N5.2 trillion in the preceding year.

Power revenue from the sale of electricity to the Nigeria Bulk Electricity Trading (NBET) increased to N11.8 billion in 2025, from the N9.4 million recorded during the previous year.

Revenue from services, including seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs, fell to N729.33 billion during the review period, from N980.45 billion in the previous year.

The report further showed that the NNPC paid N499 billion in gas flare penalties and fees in 2025.

According to the company, gas flare fees relate to statutory flare charges based on limits approved by the NUPRC in line with section 104 of the PIA, while gas flare penalties are charges for flares above regulatory limits.(TheCable)