By Sam Ike, Abuja

The Nigerian National Petroleum Company Limited (NNPCL) is facing growing scrutiny following revelations in its 2025 audited financial statement that the state-owned oil company spent N11.2 trillion on pipeline surveillance and the protection of oil and gas assets.

The controversy emerged after NNPCL released its audited 2025 financial report last week, showing a mixed financial performance. While the company recorded a 33 per cent increase in Profit After Tax, rising from N5.4 trillion in 2024 to N7.2 trillion in 2025, its overall revenue declined by 24 per cent to N34.5 trillion during the same period.

Details contained in the report indicate that the N11.2 trillion expenditure was classified under pipeline surveillance and other receivables from the federation. The company explained that the amount covered advance payments to the federation as well as costs incurred in safeguarding Nigeria’s critical oil and gas infrastructure.

The expenditure has generated widespread debate among industry stakeholders and energy analysts, particularly against the backdrop of the country’s economic challenges and rising cost of living. Many observers are questioning the scale of the spending and its implications for transparency, accountability and value for money.

The controversy has been further fuelled by the fact that the N11.2 trillion spent on pipeline security exceeded NNPCL’s entire Profit After Tax of N7.2 trillion for the year under review. Analysts argue that such a significant outlay deserves closer examination, especially given the strategic importance of the oil and gas sector to Nigeria’s economy.

Although NNPCL clarified that it did not incur any expenditure on what it described as energy security, a category previously associated with fuel subsidy payments, concerns remain focused on the pipeline security component of its spending profile.

The latest figures also highlight a shift in the company’s expenditure pattern. In 2024, NNPCL reported N7.1 trillion spent on energy security and a combined N17.5 trillion on pipeline security and related activities. The new disclosure has therefore reignited discussions on the cost of protecting Nigeria’s oil infrastructure and the effectiveness of existing security arrangements.

With crude oil theft, pipeline vandalism and illegal refining continuing to pose major threats to national revenue, experts are calling for greater transparency on how security funds are utilised and the measurable outcomes achieved from such massive investments. The debate is expected to intensify as stakeholders examine the full details of NNPCL’s audited accounts and the broader implications for Nigeria’s energy sector.