The Nigerian National Petroleum Company (NNPC) Limited says it incurred N11.2 trillion in costs to protect Nigeria’s oil and gas assets in 2025, with the Federal Government expected to reimburse the expenditure under an approved framework.
The amount was disclosed in the company’s 2025 audited financial report under “other receivables from federation”, covering advance payments to the federation and costs incurred to secure the country’s oil and gas assets.
According to the report, the arrangement allows NNPC to incur security-related expenses to protect national oil and gas infrastructure and subsequently recover the costs from the federation as energy security expenses.
Receivables refer to money owed to a company by customers or other parties for goods or services already provided.
NNPC Reports No New Energy Security Expenses
The report also stated that NNPC recognised no new energy security expenses, commonly associated with petrol subsidy payments, in 2025, compared with N7.13 trillion recorded in 2024.
However, the company reported N8.9 trillion in defrayed energy security costs carried over from the previous year.
NNPC said the outstanding energy security cost receivables were offset against royalties, taxes and dividends due as of December 2024 following a reconciliation exercise with relevant government agencies.
The reconciliation was recorded in September 2025, according to the company.
NNPC Revenue Falls to N34.52trn
The report showed that NNPC generated N34.52 trillion from contracts with customers in 2025, covering crude oil, petroleum products, natural gas, electricity and services.
Revenue from crude oil sales fell to N25.39 trillion from N29.2 trillion in 2024.
Earnings from petroleum product sales also declined sharply to N2.1 trillion from N9.68 trillion in the preceding year.
NNPC said revenue from petroleum products included sales of petrol, dual-purpose kerosene (DPK), automotive gas oil (AGO), naphtha, lubricants and other related products.
In contrast, natural gas revenue increased to N6.15 trillion in 2025 from N5.2 trillion in 2024.
Revenue from electricity sales to the Nigeria Bulk Electricity Trading (NBET) company rose to N11.8 billion from N9.4 million in the previous year.
However, revenue from services, including seismic and time-based contracts, marine operations, engineering services and gas transmission tariffs, declined to N729.33 billion from N980.45 billion.
NNPC Pays N499bn in Gas Flare Fees and Penalties
The financial report further showed that NNPC paid N499 billion in gas flare fees and penalties in 2025.
According to the company, gas flare fees are statutory charges based on limits approved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in line with Section 104 of the Petroleum Industry Act (PIA).
Gas flare penalties, meanwhile, apply when gas flaring exceeds the limits permitted by regulators.
The figures provide an overview of NNPC’s revenue performance, energy security-related costs and regulatory payments during the 2025 financial year.
