The Nigerian National Petroleum Company Limited recorded N11.2tn in receivables from the Federation in 2025 for costs and advances incurred on behalf of the government, including expenses related to securing the country's oil and gas assets. This amount represents a 57 percent increase from the N7.13tn energy security expense recognised in 2024. The disclosure highlights the substantial financial obligations associated with protecting oil and gas infrastructure against crude oil theft, pipeline vandalism, and other disruptions.
An analysis of the company's 2025 audited financial statements showed that energy security cost receivables stood at N8.67tn at the end of 2025, while other receivables from the Federation, including advances and other security-related costs, brought the total to N11.2tn. According to Note 24.2 of the financial statements, the receivables relate to advance payments to the Federation and costs incurred in protecting oil and gas assets under an approved framework between the Federal Government and NNPC.
The company's financial disclosure came as NNPC reported stronger operational performance, with crude oil and condensate production averaging 1.77 million barrels per day in 2025, the highest level in five years. Total crude oil and condensate production reached 565.8 million barrels, up five percent, while NNPC's equity share increased 11 percent to 223.7 million barrels. Natural gas production also rose nine percent to 2,606.2 billion standard cubic feet, with NNPC's equity share increasing 11 percent to 1,154.9 billion standard cubic feet.
The company attributed part of the improvement to greater availability of major crude evacuation pipelines and progress in combating oil theft. NNPC Group Chief Executive Officer, Bayo Ojulari, said community-based surveillance, government intervention, and security agencies had helped improve the availability of major pipelines. He, however, said theft remained a challenge around smaller pipelines and wellheads, particularly in difficult terrains.
The company said it was deploying wellhead cages, fibre-optic technology, and intruder-detection systems to strengthen security around oil infrastructure. Despite the financial burden associated with energy security, NNPC reported a profit after tax of N7.2tn in 2025, up from N5.4tn in 2024. Revenue stood at N34.5tn, while earnings before interest, taxes, depreciation, and amortisation increased 22 percent to N18tn.
Operating cash flow rose 16 percent to N12.8tn, while declared dividends reached N5.8tn. Pipeline maintenance costs, meanwhile, fell sharply to N13.8bn from N149.5bn in 2024, representing a decline of about 90.8 percent. NNPC said its improved performance was also supported by progress on strategic projects, including the Ajaokuta-Kaduna-Kano gas pipeline, the ANOH-OB3 Custody Transfer Metering Station, and the ANOH Gas Processing Plant.
NNPC is targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030. It also aims to raise gas production to 12 billion standard cubic feet per day by 2030 and mobilise $60bn in upstream, midstream, and downstream investments. The audited accounts do not provide a separate quantified breakdown of petrol subsidy payments for 2025.
Key points
- NNPC's receivables from the Federation rose to N11.2tn in 2025.
- Crude oil and condensate production averaged 1.77 million barrels per day in 2025.
- NNPC reported a profit after tax of N7.2tn in 2025.
