Nigeria’s state-owned oil company says it incurred N11.2tn (£5.8bn) in costs to protect the country’s oil and gas assets on behalf of the federal government in 2025.
The Nigerian National Petroleum Company (NNPC) Limited disclosed the figure in its audited financial statements for the year ended 31 December 2025.
The amount was recorded as “other receivables from federation”, covering advance payments to the government as well as costs incurred to secure the country’s oil and gas assets.
NNPC said the spending was carried out under an approved framework between the federal government and the company, which allows it to incur security-related costs and subsequently recover the money from the federation as energy security costs. (TheCable)
The disclosure means the federal government is expected to reimburse NNPC for the expenditure.
The company also said no new energy security expense – a term previously associated with petrol subsidy payments – was recognised in 2025. This compares with N7.13tn recorded under the category in 2024.
However, NNPC reported N8.9tn in defrayed energy security costs carried over from the previous year. It said the amount was reconciled with relevant government agencies and offset against royalties, taxes and dividends due as of December 2024. (TheCable)
The disclosure comes as NNPC reported revenue of N34.52tn for 2025, down from N45.1tn in 2024. The company attributed the fall mainly to lower crude oil prices and reduced sales of petroleum products following the deregulation of the market.
Despite the decline in revenue, NNPC reported a profit after tax of N7.2tn for 2025, up from N5.4tn a year earlier. Crude oil and condensate production averaged 1.77 million barrels per day, while natural gas production averaged 7.2 billion standard cubic feet per day. (NNPC Group)
The company’s latest accounts highlight the substantial financial role NNPC continues to play in funding and securing strategic oil and gas operations on behalf of the Nigerian government.
