The Nigerian National Petroleum Company Limited has disclosed that it spent N17.5 trillion on pipeline protection, energy-security operations and subsidy-related under-recoveries in the 2024 financial year.
According to the company’s 2024 consolidated financial statements, N7.13 trillion was expended on energy-security costs to maintain stable petrol prices amid exchange-rate gaps and rising import costs. An additional N8.67 trillion was recorded as under-recovery on Premium Motor Spirit.
The report stated that the spending was carried out under the Petroleum Industry Act 2021, which requires NNPCL to act as the supplier of last resort, with the expectation that the Federal Government will reimburse the company. However, the document did not indicate whether any refunds had been made.
The company also reported a Profit After Tax of N5.4 trillion for 2024, representing a 64 per cent increase from N3.29 trillion recorded in 2023. The rise was attributed to higher crude sales and improved operational efficiency.
NNPCL said the opening under-recovery balance for 2024 stood at N6.25 trillion, while “other receivables from the Federation” amounted to N8.84 trillion, covering advance payments and additional security-related costs.
The disclosure has drawn reactions from industry analysts, who described the expenditure on security and subsidy-linked costs as excessive and called for a forensic audit. They also expressed concern over continued under-recoveries despite the government’s 2023 declaration that fuel subsidy had been removed.
The company noted that throughput charges for 2024 rose to N145.7 billion, while marketing and distribution expenses covered the movement of petroleum products to depots within and outside the country.
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