The Nigerian National Petroleum Company Limited (NNPCL) is facing growing scrutiny over its reported N7.13 trillion expenditure on energy security in 2024, as contained in its audited financial report released in November 2025.
According to the report, the spending falls under the Petroleum Industry Act (PIA), which allows NNPCL to recover costs incurred while serving as the country’s supplier of last resort. The company explained that the expenses were linked to fuel supply stability, exchange rate differentials on imported petrol, and the protection of oil and gas assets.
The audit also revealed that the Federal Government owes the company about N17.5 trillion, including N8.67 trillion in energy security costs and N8.84 trillion classified as other receivables.
Despite the disclosures, NNPCL has yet to provide further clarification, with its spokesperson, Andy Odeh, unavailable for comment.
The African Democratic Congress (ADC) has called on President Bola Tinubu, NNPCL and the National Assembly to publish detailed records of the expenditure. The party questioned what tangible benefits Nigerians have gained from the huge spending and demanded transparency over pipeline surveillance and energy security contracts awarded since 2023.
Former Vice President Atiku Abubakar also criticised the development, arguing that the expenditure suggests fuel subsidy payments continued under a different name despite the government’s announcement that subsidies had been removed. He called for full disclosure of how the funds were spent and who benefited.
Industry experts, however, urged caution in drawing conclusions. Petroleum economist Professor Wumi Iledare said energy security covers a wide range of activities, including infrastructure protection, supply chain resilience and ensuring stable fuel availability. He stressed that the main issue is whether the expenditure was properly authorised, transparently reported and delivered measurable value.
Energy law expert Professor Dayo Ayoade also called for greater clarity, saying Nigerians deserve to know exactly what the funds covered and whether proper governance procedures were followed before the spending was approved.
The controversy has renewed calls for greater transparency and accountability in the management of Nigeria’s oil sector, with many stakeholders urging NNPCL to provide a detailed breakdown of the reported expenditure.
