The Nigerian National Petroleum Company Limited says it spent N11.2 trillion in 2025 to protect the country’s oil assets on behalf of the Federal Government.
The expenditure was disclosed in the company’s 2025 audited financial report reviewed by TheCable on Wednesday. It was recorded under “other receivables from federation”, relating to “advance payments to the federation and costs incurred to secure the country’s oil and gas assets”.
Receivables refer to amounts owed to a company by customers or a government for goods or services supplied on credit.
According to NNPC, the expenditure was made under an approved framework “between the federal government and the group”.
This means the Federal Government is expected to reimburse NNPC for the money spent on securing the country’s oil and gas assets.
The report stated that the framework permits NNPC to incur security-related expenses to protect the nation’s oil and gas assets and subsequently recover the costs from the federation as energy security expenses.
NNPC also said no “energy security expense”, commonly known as petrol subsidy, “was recognised” in 2025, compared with N7.13 trillion recorded in the previous year.
The report, however, showed that the company had an outstanding energy security cost of N8.9 trillion 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 financial report, NNPC generated N34.52 trillion in revenue from “contracts with customers” in 2025, covering crude oil, petroleum products, natural gas, power and services.
Revenue from crude oil sales stood at N25.39 trillion in 2025, compared with N29.2 trillion recorded from the same source in 2024.
The company also generated N2.1 trillion from petroleum product sales, a decline from N9.68 trillion recorded in 2024.
NNPC said revenue from petroleum products was generated through the sale of petrol, dual-purpose kerosene (DPK), automotive gasoline oil (AGO), naphtha, lubricants and other related products.
Natural gas revenue, however, increased to N6.15 trillion in 2025 from N5.2 trillion in the previous year.
Revenue from power sales to the Nigeria Bulk Electricity Trading (NBET) also rose to N11.8 billion in 2025, compared with N9.4 million recorded in 2024.
Meanwhile, revenue from services, including seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs, declined to N729.33 billion during the period under review from N980.45 billion the previous year.
The report also showed that NNPC paid N499 billion in gas flare penalties and fees in 2025.
According to the company, gas flare fees are statutory charges based on flare limits approved by the Nigerian Upstream Petroleum Regulatory Commission in accordance with Section 104 of the Petroleum Industry Act.
Gas flare penalties, it added, are charges imposed for flaring above the regulatory limits.