The Nigerian National Petroleum Company Limited (NNPCL) is facing calls for greater transparency over N11.2 trillion recorded as other receivables from the Federation in its 2025 audited financial statements.
The figure has sparked questions over the amount spent on securing Nigeria’s oil and gas infrastructure, although the accounts do not show that N11.2 trillion was newly spent solely on pipeline security in 2025.
According to the financial statements, the receivables relate to advance payments to the Federation and costs incurred by NNPCL in protecting oil and gas assets. The company also said it recognized no energy-security expense in 2025 after reconciling a previous N8.67 trillion energy-security receivable against royalties, taxes and dividends owed to the Federation.
The N11.2 trillion figure represents an increase from N8.84 trillion in other Federation receivables in 2024, while total receivables from the Federation fell from N17.51 trillion to N11.20 trillion following the reconciliation.
The controversy comes after NNPCL reported a 33 per cent increase in profit after tax to N7.2 trillion in 2025, from N5.4 trillion in 2024. Revenue, however, fell 24 percent to N34.5 trillion, while crude oil and condensate production reached 1.77 million barrels per day.
Former Vice-President Atiku Abubakar has demanded a detailed breakdown of the N11.2 trillion, including how much was spent on pipeline surveillance, who received the payments and what results were achieved.
Atiku also compared the figure with the roughly N3.1 trillion allocated to the Ministry of Defence in 2025, arguing that Nigerians deserve greater transparency over the oil-sector spending.
Energy economist, Prof. Wumi Iledare, said the focus should be on whether the money generated sufficient value for the country.
He argued that the size of the figure deserved professional scrutiny, asking whether the expenditure produced additional oil or helped maintain continuous production. He stressed that the N11.2 trillion should not automatically be treated as missing money but should be examined to determine whether it was efficiently spent and achieved its intended purpose.
Oil and gas consultant Chuks Emeka also said securing pipelines was necessary to tackle crude theft, vandalism and disruptions to production, but called for a detailed breakdown of the receivables.
He said Nigerians should know how much went into surveillance and other security operations, the contractors involved and the measurable results achieved.
Emeka noted that improved pipeline security appeared to have contributed to higher crude production but maintained that security spending must be transparent, independently auditable and economically efficient.
With Nigerians facing significant cost-of-living pressures, the experts said the central issue was not whether oil infrastructure should be protected, but whether the government is receiving value for the huge sums committed to the exercise.
