‘Govt Stashing Funds For Vote-buying’ – Experts Question NNPCL’s ₦11.2 Trillion Pipeline Security Spending

Questions are mounting over the Nigerian National Petroleum Company Limited’s (NNPCL) reported ₦11.2 trillion expenditure linked to pipeline surveillance and security in 2025.

The concern followed the release of the oil company’s 2025 audited financial statements, with energy experts calling for greater clarity on how the huge amount was spent and the value Nigeria got in return.

NNPCL reported a 33 per cent increase in Profit After Tax (PAT), which rose from ₦5.4 trillion in 2024 to ₦7.2 trillion in 2025.

However, the company’s revenue dropped by 24 per cent to ₦34.5 trillion during the same period.

The financial statement showed that ₦11.2 trillion was recorded under “pipeline surveillance and other receivables from federation”.

NNPCL said the figure was linked to advance payments to the Federation and costs incurred to secure the country’s oil and gas assets.

The company also clarified that it did not record expenditure on “energy security”, which it uses to describe spending related to fuel subsidy.

The ₦11.2 trillion figure has, however, attracted attention because it is significantly higher than the company’s ₦7.2 trillion profit for the year.

In 2024, NNPCL reported ₦7.1 trillion in energy security expenditure, while its combined spending on pipeline security stood at ₦17.5 trillion.

Naija News reports that former Vice President and 2027 African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, had recently called on President Bola Ahmed Tinubu’s administration to explain how the ₦11.2 trillion was spent.

Atiku said the expenditure should be subjected to proper scrutiny, noting that the amount was several times larger than the country’s defence budget allocation of about ₦3.1 trillion.

Energy expert and petroleum economist, Professor Wumi Iledare, said the focus should not only be on the size of the expenditure but also on what Nigeria gained from it.

Speaking on Arise, Iledare said NNPCL needed to demonstrate the value derived from the money spent on securing the country’s oil assets.

He said, “Energy security, what do we mean by energy security? You are talking in terms of the value derived from that N11.2 trillion.

“The magnitude must be questioned. And those are professional scepticism that NNPC is willing to look at.

“So the basic question then is, what did you derive from that N11.2 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.”

Other experts have also raised concerns over the spending while acknowledging the need to protect Nigeria’s oil and gas infrastructure.

‘Govt Stashing Funds For 2027’

Speaking in a separate interview with Daily Post, the Managing Partner of BBH Consulting and Convener of the Public Interest Advocacy Network (PIAN), Barrister Ameh Madaki, described the reported expenditure as excessive.

Madaki questioned the value of the pipeline surveillance system and raised concerns about whether the money was being properly accounted for.

He said, “What is the value of all the network of pipelines in the Niger Delta that NNPC will claim to use N11.2 trillion on pipeline surveillance?”

Madaki also alleged that the spending could be linked to political preparations ahead of the 2027 general elections, although the allegation was not independently established.

“Every discerning Nigerian knows that this unaccountable government is stashing funds away for the 2027 elections and massive vote-buying under the guise of a criminal pipeline surveillance system which has nothing to offer,” he alleged.

Oil and gas consultant and public affairs analyst, Chuks Emeka, took a different view, saying securing the country’s oil infrastructure was necessary but stressing that the spending must be transparent.

He said pipeline vandalism, crude oil theft and attacks on critical infrastructure could hurt oil production, discourage investment and reduce government revenue.

“My position is that the security of Nigeria’s oil and gas infrastructure is absolutely necessary,” Emeka said.

“We cannot afford a situation where pipeline vandalism, crude oil theft and attacks on critical infrastructure destabilize the Niger Delta, discourage investment and deprive the country of much-needed revenue.”

However, he cautioned against describing the entire ₦11.2 trillion as fresh cash spent solely on pipeline security.

According to him, the 2025 audited accounts classified the amount as receivables from the Federation, covering advances and costs incurred on behalf of the government, including the protection of oil and gas assets.

“It should therefore not simply be presented as N11.2 trillion in fresh cash spent solely on pipeline security in 2025,” he said.

Emeka, however, agreed that Nigerians deserved a detailed breakdown of the expenditure.

“How much actually went into surveillance? How much went to security operations?

“How much went to community-based surveillance and other interventions? What contracts were awarded, to whom, and what measurable results were achieved?” he asked.

‘Security Spending Must Not Become Blank Cheque’

Emeka also noted that improved security around oil infrastructure appeared to have contributed to higher crude oil production.

He said NNPCL reported that average crude production had risen from the low levels recorded in 2022 to about 1.71 million barrels per day in 2025.

“There is evidence that improved pipeline security has contributed to increased crude production,” he said.

“So, I would not argue against spending money to secure our pipelines. The issue is whether we are getting commensurate value for the money being committed.”

He called for a security model that would protect oil facilities, keep production infrastructure running and give host communities a meaningful role in protecting the assets.

According to him, such a system must also be transparent, independently audited and economically efficient.

“At a time when Nigerians are facing significant cost-of-living pressures, every trillion naira committed by the government must be subjected to rigorous scrutiny.

“Security is necessary, but security spending should not become a blank cheque,” he said.

Emeka said the key issue was not whether Nigeria should spend money securing its pipelines but how much was being spent, who was receiving the funds, what the money was being used for and what measurable benefit the country was getting from the expenditure.