Questions are intensifying over the Nigerian National Petroleum Company Limited’s (NNPCL) reported ₦11.2 trillion expenditure linked to pipeline surveillance and security in 2025, following the release of its audited financial statements.
The oil giant posted a 33 per cent jump in Profit After Tax, rising from ₦5.4 trillion in 2024 to ₦7.2 trillion in 2025. However, revenue fell 24 per cent to ₦34.5 trillion over the same period.
The ₦11.2 trillion appears under “pipeline surveillance and other receivables from federation.” NNPCL described it as advance payments to the Federation and costs incurred to protect the country’s oil and gas assets. The company stressed that the figure does not include spending on “energy security,” its term for fuel subsidy-related costs.
The sum has drawn sharp attention because it exceeds the company’s entire ₦7.2 trillion profit for the year. In 2024, NNPCL recorded ₦7.1 trillion in energy security expenditure, while combined pipeline security spending stood at ₦17.5 trillion.
Former Vice President Atiku Abubakar, the 2027 African Democratic Congress presidential candidate, has demanded full accountability from the Tinubu administration. He noted that the amount dwarfs Nigeria’s defence budget allocation of about ₦3.1 trillion and called for proper scrutiny.
Petroleum economist Professor Wumi Iledare argued that the real issue is value for money. Speaking on Arise TV, he said: “The magnitude must be questioned… What did you derive from that ₦11.2 trillion? From a petroleum economic point of view, you could decide to spend money to produce an additional barrel or decide to spend money to make sure there is continuous flow of production from the asset that you have.”
Barrister Ameh Madaki, Managing Partner of BBH Consulting and Convener of the Public Interest Advocacy Network, described the expenditure as excessive. He questioned the actual value of the Niger Delta pipeline network that could justify such spending and alleged the funds might be being stashed for the 2027 elections and vote-buying — claims that remain unverified.
Oil and gas consultant Chuks Emeka offered a more measured take. While insisting that securing oil infrastructure is essential to curb vandalism, theft and production disruptions, he cautioned against treating the entire ₦11.2 trillion as fresh cash spent solely on pipeline security. The accounts classify it as receivables from the Federation covering advances and costs incurred on behalf of the government.
Emeka pointed to rising crude production — from the low levels of 2022 to about 1.71 million barrels per day in 2025 — as evidence that improved security is delivering results. Still, he demanded a detailed breakdown: “How much actually went into surveillance? How much went to security operations? How much went to community-based surveillance… What contracts were awarded, to whom, and what measurable results were achieved?”
He warned that security spending must not become a blank cheque, especially amid widespread cost-of-living pressures. “The key issue is not whether Nigeria should spend money securing its pipelines, but how much is being spent, who is receiving the funds, what the money is being used for, and what measurable benefit the country is getting.”
As calls for transparency grow, Nigerians await clearer answers on whether the massive outlay has truly safeguarded the nation’s most critical economic assets.