NNPC’s oil security-related claims on the Federal Government rose to ₦11.2 trillion in 2025 from ₦7.13 trillion in 2024, an increase of ₦4.07 trillion, or about 57%.
The claims represent amounts the Nigerian National Petroleum Company Limited says are owed to it for energy security costs and other advances to the Federal Government, rather than entirely new spending incurred in 2025.
A major component is the cost of securing oil and gas assets. Under the existing arrangement, NNPC fronts expenses associated with protecting critical infrastructure against crude oil theft, pipeline vandalism and other security threats, with the costs subsequently recoverable from the Federal Government.
By the end of 2025, the energy security-related receivable stood at ₦8.67 trillion, while other advances to the Federal Government brought the total claims to ₦11.2 trillion.
NNPC did not recognise new energy security spending in 2025, with the ₦7.13 trillion recorded in 2024 having been netted against related payables following a September 2025 reconciliation involving government royalties, taxes and dividends.
Despite the large claims linked to oil security, NNPC reported an improvement in crude and condensate production in 2025.
Production averaged 1.77 million barrels per day during the year, the company’s highest level in five years.
NNPC Group Chief Executive Officer Bayo Ojulari attributed the improvement to community surveillance, government interventions and operations by security agencies.
Ojulari also said the availability of major crude export pipelines had improved, although crude theft remained a challenge around smaller pipelines and wellheads in remote locations.
The development highlights the financial burden associated with securing Nigeria’s oil infrastructure even as improved security and pipeline availability helped raise crude production.
