The Nigerian National Petroleum Company Limited (NNPC) recorded N11.2 trillion in receivables from the Federation in 2025, representing costs and advances incurred on behalf of the Federal Government, including expenses associated with protecting the country’s oil and gas infrastructure.

The figure was disclosed in the company’s 2025 audited financial statements and represents an increase of about N4.07 trillion, or 57 per cent, compared with the N7.13 trillion energy security expense reported for 2024.

However, the N11.2 trillion should not be interpreted as fresh cash expenditure incurred entirely during 2025. NNPC’s accounts show that the amount includes accumulated energy security-related receivables, advances and other sums owed by the Federation.

Energy Security Receivables Hit N8.67tn

According to the financial statements, NNPC’s energy security cost receivable stood at N8.67 trillion at the end of 2025, while other receivables from the Federation brought the total to N11.2 trillion.

The company said the receivables arose under an arrangement with the Federal Government that allows NNPC to incur expenses related to securing oil and gas assets and subsequently charge those costs to the Federation.

Such security expenses are linked to efforts to protect petroleum infrastructure from crude oil theft, pipeline vandalism and other disruptions affecting oil production.

NNPC also stated that it did not recognise a new energy security expense in 2025. Instead, outstanding amounts were reconciled against royalties, taxes and dividends owed to the government, with the reconciliation completed in September 2025.

Oil Production Improves

The disclosure comes as NNPC reported an improvement in oil production during the year.

Crude oil and condensate output averaged 1.77 million barrels per day in 2025, which the company described as its highest production level in five years.

Total crude oil and condensate production reached 565.8 million barrels, representing a five per cent increase. NNPC’s equity share also climbed by 11 per cent to 223.7 million barrels.

Natural gas production increased by nine per cent to 2,606.2 billion standard cubic feet, while NNPC’s equity share rose by 11 per cent to 1,154.9 billion standard cubic feet.

NNPC Reports Progress Against Oil Theft

NNPC Group Chief Executive Officer, Bayo Ojulari, attributed part of the improvement in crude production and evacuation to stronger efforts to secure major pipelines.

He said community-based surveillance, government intervention and the involvement of security agencies had contributed to greater availability of key crude evacuation routes.

Despite the improvement, Ojulari acknowledged that crude theft remains a challenge around smaller pipelines and wellheads, particularly in difficult-to-access locations.

NNPC said it is deploying technologies such as fibre-optic monitoring, intruder-detection systems and specialised wellhead protection equipment to strengthen surveillance of petroleum infrastructure.

Profit Rises to N7.2tn

Alongside the improvement in production, NNPC reported a significant increase in profitability.

The company’s profit after tax rose to N7.2 trillion in 2025, compared with N5.4 trillion in the previous year.

Revenue reached N34.5 trillion, while earnings before interest, taxes, depreciation and amortisation increased by 22 per cent to N18 trillion. Operating cash flow also grew by 16 per cent to N12.8 trillion.

The company declared N5.8 trillion in dividends.

Pipeline maintenance costs fell considerably during the year, dropping from N149.5 billion in 2024 to about N13.8 billion in 2025.

NNPC Sets Higher Production Targets

NNPC said it is targeting crude oil production of two million barrels per day by 2027, with an eventual goal of three million barrels per day by 2030.

The company also plans to increase gas production to 12 billion standard cubic feet per day by 2030 and attract about $60 billion in investments across the upstream, midstream and downstream segments of the petroleum industry.

The company said progress on major infrastructure projects, including the Ajaokuta-Kaduna-Kano gas pipeline, is also expected to support its broader production and investment objectives.

The latest financial disclosure highlights the substantial costs associated with securing Nigeria’s petroleum assets, even as NNPC reports rising production, improved pipeline availability and stronger financial performance.

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