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NNPC’s receivables from the Federation rose to N11.2tn in 2025, including costs and advances incurred on behalf of the government.
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Energy security cost receivables stood at N8.67tn, although no fresh energy security expense was recognised in 2025.
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Crude oil and condensate production rose to 1.77 million barrels per day, the highest level in five years, amid improved pipeline availability.
October 02, (THEWILL) – 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.
An analysis of the company’s 2025 audited financial statements showed that the amount was N4.07tn, or 57 percent higher than 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, even as NNPC reported higher production and a 33 percent increase in profit after tax.
However, the N11.2tn should not be interpreted as fresh cash expenditure incurred entirely in 2025.
The accounts showed that the group’s energy security cost receivable 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 said no energy security expense was recognised in 2025, compared with N7.13tn in 2024, following a reconciliation of outstanding energy security cost receivables against royalties, taxes and dividends due as of December 2024.
“The reconciliation exercise concluded in September 2025,” the company said.
The development followed energy security expenses of N7.13tn in 2024 and N4.8tn in 2023, representing a 48 percent increase between 2023 and 2024.
Oil output rises
The 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.
Speaking at a media parley on the results, NNPC Group Chief Executive Officer, Bayo Ojulari, said community-based surveillance, government intervention and security agencies had helped improve the availability of major pipelines.
“With the combination of both community-based surveillance and intervention combined with the armed forces, we’ve seen stability, and most of those pipelines have retained 100 percent availability,” Ojulari said.
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.
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Profit rises to N7.2tn
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.
The company also acquired 500 compressed natural gas-powered trucks.
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. Therefore, the N11.2tn Federation receivable should not be treated as a measure of subsidy-related savings.
Rather, the disclosure illustrates the scale of government obligations linked to oil security and other costs incurred by NNPC as the company seeks to raise production and improve the reliability of petroleum infrastructure.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
