NNPC says it incurred N11.2tn in costs to protect Nigeria’s oil and gas assets in 2025, with the federal government expected to reimburse the company.
The Nigerian National Petroleum Company (NNPC) Limited says it spent N11.2 trillion in 2025 to protect Nigeria’s oil and gas assets on behalf of the federal government, with the expenditure recorded as money owed to the company by the federation.
The figure was disclosed in NNPC’s 2025 audited financial report, where it was recorded under “other receivables from federation”. The account covers advance payments to the federation as well as costs incurred by NNPC to secure the country’s oil and gas assets.
Why NNPC is cl02aiming the money
According to the report, the expenditure was incurred under an approved framework between the federal government and NNPC. The framework allows the oil company to incur costs required to protect Nigeria’s oil and gas assets and subsequently recover those expenses from the federation as energy security costs.
This means the N11.2tn is treated as a receivable because NNPC expects the federal government to reimburse the company for costs it says were incurred on the government’s behalf. In accounting terms, receivables are amounts owed to a company for goods or services already provided or expenses incurred on another party’s behalf.
No new petrol subsidy recognised in 2025
NNPC also said it did not recognise any “energy security expense” in 2025, describing the cost as commonly known as petrol subsidy. This compares with N7.13tn recorded under the expense in 2024, according to the audited report.
However, the company’s accounts showed that N8.9tn in defrayed energy security costs from 2024 was carried over and settled during 2025. NNPC said the amount followed a reconciliation exercise with relevant government agencies, after which the energy security cost receivable was netted against royalties, taxes and dividends due as of December 2024. The reconciliation was recorded in September 2025.
NNPC generated N34.52tn in revenue
Beyond the security-related expenditure, NNPC reported N34.52tn in revenue from contracts with customers in 2025, covering crude oil, petroleum products, natural gas, electricity and services.
Crude oil sales accounted for the largest share, generating N25.39tn, down from N29.2tn in 2024. Revenue from petroleum product sales also fell significantly to N2.1tn, compared with N9.68tn a year earlier. NNPC said the petroleum products category included petrol, dual-purpose kerosene (DPK), automotive gas oil (AGO), naphtha, lubricants and other related products.
Gas revenue rises as services decline
Natural gas was one of the areas where NNPC recorded higher revenue. Gas revenue rose to N6.15tn in 2025, compared with N5.2tn in the preceding year. Revenue from electricity sold to the Nigeria Bulk Electricity Trading company also increased to N11.8bn, from N9.4m in 2024.
Revenue from services, however, declined to N729.33bn from N980.45bn. The category includes seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs.
NNPC paid N499bn in gas flare charges
The audited report also showed that NNPC paid N499bn in gas flare penalties and fees in 2025. The company explained that gas flare fees are statutory charges based on flare limits approved by the Nigerian Upstream Regulatory Commission (NUPRC) in line with Section 104 of the Petroleum Industry Act (PIA).
Gas flare penalties, meanwhile, apply to flaring above the regulatory limits approved by the upstream regulator.
The figures highlight the scale of NNPC’s financial obligations and receivables in 2025, while also showing significant changes across its major revenue streams, particularly the decline in crude oil and petroleum product revenue alongside increased earnings from natural gas.
