There have been questions over the expenditure of N7.13 trillion by the Nigerian National Petroleum Company Limited (NNPCL) on energy security in 2024. The figure was contained in the NNPCL’s 2024 audit report which was released in November 2025. Although the company did not specifically explain what the money was meant for, experts said it could be for fuel subsidy payment or protection of gas pipelines. Amid the controversy, the NNPCL has kept mum. Its Chief Corporate Communications Officer, Andy Odeh, did not respond to phone calls and a message sent to his mobile telephone line yesterday by Daily Trust. The NNPCL’s audit report, which termed the funds as Under Recovery/Energy Security Expense, stated, “In line with Section 64(M) of the Petroleum Industry Act (PIA) 2021, the cost incurred by NNPC Limited (Group) as the energy supplier of last resort for energy security reasons, and all associated cost shall be on the account of the Federation.” The report also said the government instructed that NNPCL could not sell its Premium Motor Spirit (PMS) above a certain regulated price, but the cost of importing this PMS is usually much higher than this regulated price. “The under recovery is essentially the difference between the actual landing cost of the product and the regulated price. This balance is used to reduce the cost of sales of the Group. The corresponding entry is either used to reduce the liability due to the Federation or used as a receivable from the Federation.” It added that PMS cost under recovery is recognised where there is reasonable assurance that it will be received and all attached conditions has been complied with. “When it relates to an expense item, they are deducted in reporting the related expense in cost of sales.” Thus, it said the money the federal government is owing it due to its interventions in energy stability during the year amounted to N17.512 trillion. It listed the debt as “energy security cost” which amounted to N8.67 trillion and ‘other receivables from federation’ at N8.840 trillion. It explained that the security cost during the year (2024) was made up of energy security expense of N7.1 trillion and N4.8 trillion for 2023. “The energy security expense arises when there is differential between the exchange rates (the Modulation factor) used to freeze the Premium Motor Spirit (PMS) Ex-coastal Price and the prevailing exchange rate at the point of import settlement. The amount is receivable to the Group as they are defrayed and charged against amounts due to the Federation in line with the provision of Section 64(m) of the Petroleum Industry Act of 2021,” it explained. The report also disclosed that other receivables relate to advance payment to the federation and the security costs incurred in protecting the oil and gas assets. According to the report, this is under the framework of approval between the Government of Nigeria and the Group to incur security costs and charge same to the Federation. ADC demands accountability The African Democratic Congress (ADC) has called on President Bola Ahmed Tinubu, the NNPCL and the National Assembly to publicly account for trillions of naira reportedly spent on energy security, questioning what Nigeria has gained from the expenditure. The opposition party made the demand in a statement issued on Monday by its National Publicity Secretary, Bolaji Abdullahi, while reacting to figures contained in the recently audited financial accounts of NNPCL for the 2024 financial year. According to Abdullahi, the audited accounts showed that N7.13 trillion was recorded under “Energy Security” in 2024, a figure he claimed rose to about N17.5 trillion when other fuel-related costs and receivables reflected in the accounts are included. According to him, the scale of the expenditure raises serious questions that deserve immediate public explanation. “Only a few years ago, Nigerians debated a pipeline surveillance contract worth about N48 billion. Today, the audited accounts record N7.13 trillion under ‘Energy Security’ for 2024. When other fuel-related costs and receivables reflected in the accounts are taken into consideration, the amount rises to about N17.5 trillion,” Abdullahi said. He said while safeguarding Nigeria’s oil and gas infrastructure remains a legitimate national priority, spending under the guise of security should not be shielded from public scrutiny. “The bigger the bill, the stronger the obligation to explain it,” he added. The party also referenced public reports identifying Tantita Security Services Nigeria Ltd, a company linked to former Niger Delta militant leader, Government Ekpemupolo, popularly known as Tompolo, as a major beneficiary of pipeline surveillance contracts. It alleged that Tompolo had recently emerged as a prominent supporter of President Tinubu’s re-election campaign, arguing that the development makes transparency over the contracts even more necessary.
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