NNPC Spends Record N11.2tn On Oil Asset Security In 2025, Crude Revenue Falls By N3.8tn
Zainab Abioye
The Nigerian National Petroleum Company Limited said it incurred N11.2tn in costs to secure the country’s oil and gas assets in 2025, with the Federal Government expected to reimburse the state-owned energy company.
The disclosure is contained in NNPC’s 2025 audited financial statements, which classified the expenditure as “other receivables from federation” arising from advance payments to the federation and costs incurred to secure the nation’s oil and gas assets.
The development means that billions of naira spent by NNPC on oil and gas security during the year remain recoverable from the Federal Government under an approved framework between the government and the national oil company.
According to the audited report, the framework permits NNPC to incur security-related expenditure required to protect the country’s oil and gas assets and subsequently recover the costs from the federation as energy security costs.
The disclosure comes amid persistent concerns over oil theft, pipeline vandalism, crude production losses and the high cost of protecting Nigeria’s petroleum infrastructure.
NNPC also disclosed that no new energy security expense, commonly associated with petrol subsidy, was recognised in 2025, compared with N7.13tn recorded under the category in 2024.
However, the company reported a defrayed energy security cost of N8.9tn carried over from the previous year.
Explaining the figure, NNPC said a reconciliation exercise with relevant government agencies resulted in the energy security cost receivables being offset against royalties, taxes and dividends due as of December 2024.
The reconciliation, according to the company, was recorded in September 2025.
The audited accounts also revealed a significant decline in NNPC’s revenue from crude oil sales during the year under review.
The company generated N34.52tn in revenue from contracts with customers in 2025, covering crude oil, petroleum products, natural gas, power and services.
Of the total, crude oil sales accounted for N25.39tn, representing a decline from the N29.2tn recorded from the same revenue stream in 2024.
Revenue from petroleum product sales also fell sharply to N2.1tn in 2025, compared with N9.68tn in the preceding year.
NNPC said the petroleum products revenue was generated from the sale of petrol, dual-purpose kerosene, automotive gas oil, naphtha, lubricants and other related products.
While crude oil and petroleum product revenues declined, NNPC recorded an increase in revenue from natural gas.
The company’s natural gas revenue rose from N5.2tn in 2024 to N6.15tn in 2025.
Revenue from electricity sales also increased, although from a relatively low base. NNPC reported N11.8bn in power revenue from electricity sold to the Nigeria Bulk Electricity Trading company in 2025, compared with N9.4m in 2024.
However, revenue from services declined from N980.45bn to N729.33bn during the period.
The service category covered activities including seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs.
