The Nigerian National Petroleum Company Limited, NNPCL, has released its 2025 audited financial statement, revealing a Profit After Tax (PAT) of N7.2 trillion, a 33% increase from N5.4 trillion in 2024. However, the company's revenue declined by 24% to N34.5 trillion. A significant portion of the report shows that NNPCL spent N11.2 trillion on "pipeline surveillance and other receivables from federation," relating to "advance payments to the federation and costs incurred to secure the country's oil and gas assets."
Energy experts have raised serious questions over the N11.2 trillion spending, citing concerns about transparency and accountability. Atiku Abubakar, the presidential candidate of the African Democratic Congress, has demanded that President Bola Ahmed Tinubu's administration provide Nigerians with details of the expenditure. According to him, the N11.2 trillion should be subjected to scrutiny, especially given that about N3.1 trillion was spent on the nation's defence budget allocation.
Prof. Wumi Iledare, an energy expert and petroleum economist, has also weighed in on the controversy, suggesting that the question about the N11.2 trillion should be about the value the country derived from the expenditure. He emphasized that the magnitude of the spending must be questioned and that professional scepticism is necessary to understand the value of the pipeline surveillance system.
Other energy experts, including Ameh Madaki, Managing Partner of BBH Consulting, and Chuks Emeka, an oil and gas consultant, have expressed concerns about the excessive spending and the lack of transparency. Madaki alleged that the government could be using the pipeline surveillance system to divert funds ahead of the 2027 general elections. Emeka, on the other hand, stressed the need for a detailed breakdown of the costs and measurable results achieved.
Emeka noted that improved pipeline security appeared to have contributed to increased crude oil production, with average production rising significantly from 2022 to 1.71 million barrels per day in 2025. However, he emphasized that Nigerians are entitled to demand a detailed breakdown of the costs and that the security spending should not become a blank cheque.
The controversy surrounding NNPCL's N11.2 trillion spending has sparked a national debate, with many Nigerians questioning the value of the expenditure. As the country faces significant cost-of-living pressures, every trillion naira committed by the government must be subjected to rigorous scrutiny. The need for transparency and accountability in the management of the nation's resources has become increasingly important.
The issue has also raised concerns about the security model used to protect the Niger Delta and the need for a transparent and independently auditable system. As the government continues to face pressure to provide details of the expenditure, it remains to be seen how the N11.2 trillion spending will be justified and what measurable value Nigeria will derive from it.
Key points
- NNPCL spent N11.2 trillion on pipeline surveillance and security in 2025.
- Energy experts have raised concerns about the transparency and accountability of the expenditure.
- The spending has sparked a national debate about the need for transparency and accountability in the management of Nigeria's resources.
