NNPC RECORDS N11.2TN IN OIL SECURITY-RELATED CLAIMS

The Nigerian National Petroleum Company Limited recorded N11.2tn in claims from the Federation in 2025 for advances and costs incurred on its behalf, including expenses linked to protecting oil and gas assets.

An analysis of the company’s 2025 audited financial statements showed that the figure was about N4.07tn, or 57 per cent, higher than the N7.13tn energy security expense recorded in 2024. However, NNPC clarified that the N11.2tn does not represent fresh expenditure incurred entirely in 2025.

The accounts showed that N8.67tn of the amount represented energy security cost receivables, while other advances and receivables from the Federation made up the balance.

NNPC said no new energy security expense was recognised in 2025 after a reconciliation exercise with government agencies. Outstanding amounts were offset against royalties, taxes and dividends owed as of December 2024.

The company also reported improved oil production during the year. Crude oil and condensate output averaged 1.77 million barrels per day, its highest level in five years.

NNPC Group Chief Executive Officer, Bayo Ojulari, attributed the improved performance partly to community surveillance, government intervention and security operations, which helped improve the availability of major crude evacuation pipelines.

Despite the progress, NNPC said crude theft remained a challenge around smaller pipelines and wellheads, prompting the use of technologies including fibre-optic monitoring and intrusion detection systems.

The company reported N7.2tn profit after tax in 2025, compared with N5.4tn in 2024.