The Federation has racked up a staggering N17.5tn as debt owed to the Nigerian National Petroleum Company Limited for pipeline protection and energy security operations the oil giant undertook on behalf of the nation in the financial year ended 2024.
This came as analysts demanded a forensic audit of the N17.5tn spending, and expressed concern over the pipeline protection and energy-security costs, citing persistent leakages, low crude production, and systemic opacity in the national oil company.
Findings showed that out of the total amount, N7.13tn was spent as energy-security costs to keep petrol prices stable whenever the gap between the exchange rate and the ex-coastal price of refined petrol widened. This is according to NNPC’s 2024 consolidated financial statements, analysed by our correspondent on Thursday.
The costs also showed that a significant portion of the expenditure went into safeguarding Nigeria’s critical oil and gas infrastructure. This included pipeline surveillance, repairs, prevention of crude oil theft, and security operations aimed at ensuring an uninterrupted energy supply across the country.
Recall that on Monday, the Nigerian National Petroleum Company Limited declared a profit after tax of N5.4tn for the financial year ended 2024, marking one of its strongest performances since its transition into a limited liability company. The Group Chief Executive Officer of NNPCL, Bayo Ojulari, announced the financial results during a press briefing in Abuja.
The latest figures represent a sharp improvement from the 2023 financial year, when the company posted a Profit After Tax of N3.297tn. The 2024 profit reflects a 64 per cent year-on-year increase, signalling the impact of higher production volumes, cost-cutting measures, and enhanced operational efficiency across its assets.
In the document, NNPC disclosed that N8.67tn of the total amount was spent directly as under-recovery on refined petroleum products, highlighting the immense financial burden of maintaining operations under regulated fuel prices.
