The Nigerian National Petroleum Company (NNPC) Limited spent N11.2 trillion in 2025 to protect Nigeria’s oil and gas assets on behalf of the Federal Government, according to its 2025 audited financial report.
The figure was recorded under “other receivables from federation” as advance payments to the federation and costs incurred to secure the country’s oil and gas assets.
According to the report, the expenditure was incurred under an approved framework between the Federal Government and the NNPC, which allows the company to bear security costs for the protection of oil and gas assets and subsequently recover the expenses from the federation as energy security costs.
The arrangement means the Federal Government is expected to reimburse NNPC for the expenses incurred.
The company also said no “energy security expense”, commonly referred to as petrol subsidy, was recognised in 2025, compared with N7.13 trillion recorded in the previous year.
However, the report showed that NNPC had a defrayed 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,” the company said.
Meanwhile, NNPC generated N34.52 trillion in revenue from contracts with customers in 2025.
The revenue covered crude oil, petroleum products, natural gas, power and services.
Crude oil sales accounted for N25.39 trillion, down from N29.2 trillion recorded from the same revenue stream in 2024.
Revenue from petroleum product sales also fell sharply to N2.1 trillion in 2025 from N9.68 trillion in the previous year.
NNPC said petroleum product revenue came from the sale of petrol, dual-purpose kerosene, automotive gas oil, naphtha, lubricants and other related products.
Natural gas revenue, however, increased to N6.15 trillion in 2025 from N5.2 trillion in 2024.
Revenue from power also rose, with NNPC recording N11.8 billion from electricity sales to the Nigeria Bulk Electricity Trading company in 2025, compared with N9.4 million the previous year.
Revenue from services, including seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs, declined to N729.33 billion from N980.45 billion in 2024.
The report further showed that NNPC paid N499 billion in gas flare penalties and fees during the year.
According to the company, gas flare fees are statutory charges based on flare limits approved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in line with Section 104 of the Petroleum Industry Act.
Gas flare penalties, it added, are charges imposed for flaring above the regulatory limits.
