The Nigerian National Petroleum Company Limited (NNPC) recorded ₦11.2 trillion in receivables from the Federation in 2025, including costs and advances incurred on behalf of the government to secure Nigeria’s oil and gas assets.
The figure is contained in NNPC’s 2025 audited financial statements, which the company has published on its investor-relations website. The accounts classify the amount under “other receivables from Federation” and say it includes advance payments to the Federation and security costs incurred to protect oil and gas assets.
The disclosure has drawn attention because of its size. The ₦11.2 trillion figure was about 57 percent higher than the ₦7.13 trillion energy security expense recognised in 2024, although the two figures should not be treated as identical measures of spending.
NNPC said the security-related costs were incurred under an approved framework between the Federal Government and the company, allowing NNPC to incur expenses associated with protecting petroleum assets and subsequently recover them from the Federation.
Importantly, the ₦11.2 trillion does not mean NNPC made ₦11.2 trillion in fresh cash expenditure on oil security during 2025. The accounts show that ₦8.67 trillion of the receivable was classified as an energy security cost receivable, while the wider ₦11.2 trillion balance also included advances and other amounts owed by the Federation.
NNPC also reported that no new energy security expense was recognised in 2025, compared with ₦7.13 trillion in 2024. It said a reconciliation exercise with government agencies resulted in outstanding energy security cost receivables being offset against royalties, taxes and dividends due as of December 2024, with the reconciliation recorded in September 2025.
The disclosure comes alongside a stronger operating performance by NNPC. The company reported ₦7.2 trillion in profit after tax for 2025, up from ₦5.4 trillion a year earlier, while revenue stood at ₦34.5 trillion. Crude oil and condensate production averaged 1.77 million barrels per day, according to the company’s results
NNPC attributed the improvement in production partly to better availability of major crude evacuation pipelines and measures to combat oil theft. The company said it was deploying technologies including fibre-optic monitoring and intruder-detection systems, alongside community-based surveillance and security interventions.
The size of the receivable nevertheless highlights the financial relationship between NNPC and the Federation as the company moves further toward its stated role as a commercially driven energy company. While NNPC reported higher earnings and production in 2025, significant government-related obligations continue to appear on its balance sheet.
For the oil industry, the issue extends beyond accounting. The cost of securing pipelines, production facilities and other petroleum infrastructure remains closely linked to Nigeria’s ability to sustain crude production and capture more value from its oil and gas resources.
