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NNPCL’s audited 2024 financial statements have sparked fresh scrutiny after revealing N7.13tn in energy security spending.
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The ADC and former Vice President Atiku Abubakar have questioned the spending, arguing that the figures raise fresh concerns over transparency.
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Energy analysts say the national oil company should disclose the components of the expenditure, identify the projects funded and demonstrate that the spending complied with governance standards and delivered value.
July 22 , (THEWILL) — The Nigerian National Petroleum Company Limited’s N7.13tn expenditure on energy security in 2024 has come under fresh scrutiny, with opposition politicians and energy experts demanding a detailed explanation of what the funds were used for.
The spending, disclosed in the company’s audited 2024 financial statements, has sparked debate after the national oil company failed to provide a breakdown of the expenditure.
Analysts say the amount could cover pipeline surveillance, protection of oil and gas infrastructure, fuel supply operations and other energy security initiatives, but insist Nigerians deserve greater transparency.
The controversy comes as the Federal Government continues to defend its economic reforms, including the removal of fuel subsidy, amid rising living costs.
ADC seeks full disclosure
The African Democratic Congress has called on President Bola Tinubu, the National Assembly and NNPCL to publish details of all energy security spending since the current administration took office.
In a statement issued by its National Publicity Secretary, Bolaji Abdullahi, the opposition party said the N7.13tn recorded as energy security expenditure rises to about N17.5tn when under-recovery claims and other receivables in the audited accounts are included.
The party maintained that while securing Nigeria’s oil and gas assets is a legitimate responsibility, spending of such magnitude should not be shielded from public scrutiny.
It also demanded details of pipeline surveillance contracts, including beneficiaries, amounts paid, projects executed and the value derived from the expenditure.
Atiku questions subsidy claims
Former Vice President Atiku Abubakar also faulted the expenditure, arguing that the audited accounts undermine the Federal Government’s claim that fuel subsidy had been eliminated.
According to him, the classification of the N7.13tn as energy security expenses raises questions about whether subsidy-related costs continued under a different description.
He challenged the government to explain who authorised the expenditure, who benefited from it and why the payments were not publicly disclosed.
Analysts question NNPCL’s energy security spending
Industry experts said the controversy underscores the need for NNPCL to clearly define what constitutes energy security expenditure.
Former President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Dele Kelvin Oye, argued that the liabilities reflected in the audited accounts suggest subsidy obligations may have been repackaged rather than eliminated.
Energy law expert at the University of Lagos, Prof. Dayo Ayoade, said the company should clarify whether the spending covered pipeline security, infrastructure protection, fuel supply management or other statutory obligations, warning that undocumented policy costs could raise governance concerns.
Similarly, petroleum economist Prof. Wumi Iledare said while energy security requires significant investment, the size of the expenditure demands greater disclosure.
He maintained that the key issue is whether the spending was properly classified, transparently reported, and delivered measurable value in line with NNPCL’s commercial mandate.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
