The Nigerian National Petroleum Company Limited, NNPCL, is facing growing scrutiny over N11.2 trillion recorded in its 2025 audited financial statements in connection with pipeline surveillance and other receivables from the Federation.
The figure has raised questions among energy experts and public commentators, particularly because it is higher than the state owned oil company’s N7.2 trillion profit after tax recorded during the same financial year.
NNPCL reported that its profit after tax increased by 33 per cent from N5.4 trillion in 2024 to N7.2 trillion in 2025, while revenue fell by 24 per cent to N34.5 trillion.
The company’s accounts described the N11.2 trillion as relating to advance payments to the Federation and costs incurred to secure the country’s oil and gas assets. NNPCL also clarified that it did not record expenditure on “energy security” in the sense of fuel subsidy payments during the year.
Brandspur Politics reports that the scale of the expenditure has nevertheless triggered demands for greater transparency, especially as Nigerians continue to contend with high living costs and pressure on household incomes.
Former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, has called on President Bola Ahmed Tinubu’s administration to explain how the N11.2 trillion was spent. He argued that the expenditure should be subjected to scrutiny, noting that the figure was substantially higher than the country’s N3.1 trillion defence budget allocation.
Energy economist, Prof. Wumi Iledare, said the debate should go beyond the size of the expenditure to examine the value Nigeria obtained from it.
According to him, the key question is whether the spending produced sufficient economic value, including sustaining crude oil production and preventing disruption to existing oil assets.
Another energy expert, Ameh Madaki, described the expenditure as excessive and questioned the effectiveness and value of the pipeline surveillance arrangements. He also alleged that the system could be used to divert public funds ahead of the 2027 general elections, although the allegation was not supported by evidence provided in the report.
Oil and gas consultant and public affairs analyst, Chuks Emeka, offered a more cautious assessment, saying securing oil and gas infrastructure remained necessary because pipeline vandalism, crude oil theft and attacks on critical assets could undermine production and government revenue.
Emeka, however, stressed that the N11.2 trillion should not automatically be interpreted as N11.2 trillion in fresh cash spent exclusively on pipeline security in 2025. He said the audited accounts described the amount as receivables from the Federation, covering advances and costs incurred on behalf of the government, including the protection of oil and gas assets.
He called for a detailed breakdown showing how much was spent on surveillance, security operations, community based interventions and other activities, as well as information on the contracts awarded and the measurable results achieved.
The scrutiny comes against the backdrop of a reported improvement in Nigeria’s crude oil production. NNPCL said average production reached about 1.71 million barrels per day in 2025, up significantly from the much lower levels recorded in 2022.
The improvement suggests that efforts to protect oil infrastructure may have contributed to restoring production, but the scale of the expenditure means questions over efficiency and accountability are unlikely to disappear.
For Nigerians already facing significant cost of living pressures, the controversy goes beyond accounting figures. Every trillion naira committed to public expenditure represents resources that citizens expect to translate into measurable economic benefits, stronger public services or improved national security.
The central issue, therefore, is whether the money committed to protecting Nigeria’s oil infrastructure delivered value proportionate to its enormous cost, and whether the expenditure can withstand independent scrutiny.
