According to a report by DAILY POST on Wednesday 7 October 2026, in its audited financial statements for 2025, the Nigerian National Petroleum Company Limited (NNPC) recorded N11.2 trillion for pipeline surveillance and other receivables from the federation, which is causing it to come under increasing scrutiny.
At a time when Nigerians are already facing substantial economic and cost-of-living pressures, the revelation has prompted inquiries from politicians and energy specialists.
Despite a 24% decline in revenue to N34.5 trillion, NNPC’s audited financial statements revealed a 33% increase in the company’s profit after tax, from N5.4 trillion in 2024 to N7.2 trillion in 2025.
The business elaborated that the N11.2 trillion sum is associated with federation advance payments and costs for oil and gas asset security.
Still, people are curious about the sum since it’s higher than NNPC’s reported N7.2 trillion profit after taxes for the year.
Atiku Abubakar, a former vise president and presidential candidate for the African Democratic Congress, has demanded an explanation from the federal government regarding the expenditure.
Noting that the amount was substantially greater than the country’s defense budget allocation of approximately N3.1 trillion, Atiku contended that the expenditure should be appropriately scrutinized.
The figure should be professionally scrutinized, according to energy economist Prof. Wumi Iledare, who emphasized that the value Nigeria received from the expenditure should be the main issue.
The government, in his view, needs to figure out if the massive investments made to acquire oil assets were worthwhile.
At the same time, energy expert Chuks Emeka cautioned that the N11.2 trillion in 2025 should not be seen as a one-time payment for pipeline security.
Expenses paid for government business, such as safeguarding oil and gas infrastructure, were categorized as receivables from the federation, he said, according to the audited accounts.
It is the right of the Nigerian people, according to Emeka, to know exactly how much money went into things like contracts, community-based initiatives, security operations, and surveillance.
In 2025, NNPC reported an average production of approximately 1.71 million barrels per day of crude oil, which he attributed, in part, to enhanced security around oil infrastructure.
The question of whether the nation is getting value for its money should be the primary focus, he emphasized.
The expenditure was deemed excessive by another expert, Barrister Ameh Madaki, who also cast doubt on the efficacy of the pipeline surveillance arrangement.
Additionally, he personally claimed—and this is still his claim—that the system could be utilized to divert public funds in the run-up to the 2027 elections.
Because of this controversy, people are now looking to NNPC and the federal government to explain exactly how they spent N11.2 trillion and what tangible benefits they got out of it.
COURTESY: Suskegist
