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 linked to securing oil and gas assets.
An analysis of NNPC’s 2025 audited financial statements showed that the amount comprised an N8.67tn energy security cost receivable and other receivables from the Federation.
However, the N11.2tn should not be interpreted as fresh expenditure incurred entirely in 2025. NNPC said it recognized no energy security expense in 2025, compared with N7.13tn in 2024.
According to the accounts, outstanding energy security cost receivables were reconciled with royalties, taxes, and dividends owed by the government as of December 2024. The reconciliation was completed in September 2025.
The company said the receivables relate to advances to the Federation and costs incurred in protecting oil and gas assets under an approved arrangement with the Federal Government.
The disclosure came as NNPC reported stronger production and earnings for 2025. Profit after tax rose 33 percent to N7.2tn from N5.4tn in 2024, while revenue stood at N34.5tn. Operating cash flow also increased 16 percent to N12.8tn.
Crude oil and condensate production averaged about 1.77 million barrels per day in 2025, while NNPC said improved pipeline security had contributed to higher output. The company previously reported that national crude production reached an average of 1.71 million barrels per day in 2025, with peak production of 1.84 million barrels per day.
NNPC Group Chief Executive Officer Bayo Ojulari said a combination of community-based surveillance, government intervention, and security operations had improved the availability of major crude evacuation pipelines.
He said the company was also deploying technologies, including fiber-optic systems and intruder-detection equipment, to tackle theft around pipelines and wellheads.
The company declared a N5.8tn dividend for 2025, while earnings before interest, taxes, depreciation, and amortization rose 22 percent to N18tn.
NNPC is targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030, alongside increased gas production and $60bn in investments across the oil and gas value chain.
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