Uncategorized
NNPC’s N17.5tn Pipeline Security, Fuel Subsidy Bill
THE astonishing revelation that the Nigerian National Petroleum Company Limited spent N17.5 trillion in a single financial year on fuel subsidies and pipeline security once again raises questions about the government’s declared abolition of fuel subsidies and the opaque financial management within Nigeria’s oil sector.
This massive expenditure not only outpaced Nigeria’s annual fuel subsidy records of past years but also surfaced amid sharply higher petrol prices for ordinary Nigerians. This contradiction demands urgent scrutiny and accountability.
Central to this anomaly is NNPC’s 2024 financial statement, which shows an unprecedented N17.5 trillion spent ostensibly on securing oil pipelines and energy security operations.
This outlay encompasses N7.13 trillion classified as energy-security costs aimed at stabilising petrol prices, plus N8.67 trillion related to “under-recovery” on refined petroleum products, which refers to the price gap between the regulated pump price and the higher actual import cost absorbed by NNPC.
Another N8.84 trillion is recorded as receivables for advances and security costs incurred, reinforcing the sheer scale of the company’s financial exposure.
Despite this massive operational cost, no clear government reimbursement plan has been outlined, placing tremendous strain on NNPC’s cash flow and raising concerns about long-term fiscal sustainability.
Indeed, the figures rubbish the NNPC’s N5.4 trillion profit declared for 2024, a 64 per cent rise over the N3.29 trillion posted in 2023.
This financial opacity that has defined NNPC’s operations for decades echoes concerns raised by analysts about endemic corruption, operational inefficiencies, and systemic leakages.
Industry watchers and experts have slammed this expenditure as outrageous, urging the government to commission a comprehensive forensic audit.
Given that Nigeria’s crude daily production is hovering at roughly 1.4 to 1.5 million barrels, well below its potential of at least 2.2mbpd recorded during the COVID pandemic, the justification for such exorbitant pipeline security and subsidy-related costs strains credulity.
It is bewildering how the NNPC managed to incur such a huge fuel subsidy cost when pump prices averaged N1,189/litre in December 2024, up 77 per cent from N761/litre a year earlier, while petrol landing cost was approximately N970 per litre for the same period, per the Major Energies Marketers Association of Nigeria.
Even the fact that the naira closed at N1,535/dollar on December 31, 2024, after fluctuating widely for most of the year and suffering a 40.9 per cent depreciation overall, cannot explain these figures.
Finance Minister, Wale Edun’s Accelerated Stabilisation and Advancement Plan, presented in June 2024, projected fuel subsidy to gulp about N5.4 trillion in 2024 as against the N3.6 trillion budgeted for the same intervention in 2023. The NNPC’s figures show that the projections were overshot significantly.
The Petroleum Industry Act 2021 partially explains the government’s role in this quagmire.
By designating NNPC as “supplier of last resort” under Section 64(m), the Act mandates the company to absorb subsidy costs temporarily when the regulated pump price is lower than NNPC’s actual landing cost for imported fuel, with the Federation expected to reimburse these under-recoveries later.
This defeats the purpose of the oil sector liberalisation, as price regulation and fuel subsidy remain in place despite record petrol prices.
It raises questions about the impact of the entry of Dangote Petroleum Refinery on the market since January 2024, given its persistent problems with local crude supply and other operational bottlenecks.
Nigeria still imported petrol worth N12.8 trillion in the 15 months between August 2024 and October 2025, per the Nigerian Midstream and Downstream Petroleum Regulatory Authority data.
Compounding the issue is the staggering rise in pipeline protection costs.
Allegations abound that pipeline security contracts are awarded opaquely to politically connected cronies, enabling systemic corruption and even tacit collusion with militant groups controlling “pipeline protection” zones through crude allocations rather than cash.
The Muhammadu Buhari administration awarded a N4 billion per month pipeline security contract starting August 2022 to Tanita Security Services controlled by ex-Niger Delta militant, Government Ekpemupolo, aka Tompolo.
Therefore, open contracting, detailed contract disclosures, independent third-party audits, and parliamentary oversight are indispensable to reclaiming accountability and restoring public confidence.
The NNPC’s notable increase in total revenue and profit after tax in 2024, including gains from crude sales, refined petroleum products, gas, and power, indicates improved operational efficiency at some levels.
However, rising finance costs and liability ratios erode sustainability and point to recklessness in managing public funds.
Addressing these issues demands political will for openness, tighter controls, and reforms that align Nigeria’s oil wealth with national development, rather than allowing it to be cornered by vested interests.
The Kano State Government has declared Tuesday, June 16, 2026, a public holiday to commemorate the beginning of the Islamic New Year, 1448 AH.
The announcement was made in a statement issued on Monday by the State Commissioner for Information and Internal Affairs, Comrade Ibrahim Abdullahi Waiya.
Governor Abba Kabir Yusuf congratulated Muslims in Kano State and across the country on witnessing the new Islamic year, which begins with Muharram, the first month of the Islamic lunar calendar.
The statement was signed by the Commissioner for Information and Internal Affairs, Comrade Ibrahim Abdullahi Waiya, on Monday, with a copy made available to the press in Kano.
The governor urged residents of the state and the Muslim Ummah to use the occasion as a period of reflection, assessing their actions over the past year and renewing their commitment to righteousness and community development.
He also called on citizens to offer special prayers for peace, unity and prosperity in Kano State and Nigeria as a whole.
Governor Yusuf further reassured the people of Kano of his administration’s commitment to improving their living standards through people-centred policies and dedicated governance.
The state government expressed hope that the new Islamic year would usher in greater progress, stability and blessings for the people of Kano and the nation at large
The Niger State Government has declared Tuesday, June 16, 2026, a work-free day across the state to mark the commencement of the Islamic New Year 1448 AH.
The declaration, approved by Mohammed Umaru Bago, is intended to enable Muslims and other residents to reflect on the spiritual significance of the Hijrah—the historic migration of Prophet Muhammad (SAW) from Makkah to Madinah.
The Secretary to the Government of Niger State, Abubakar Usman, described the Hijrah as a symbol of sacrifice, perseverance, faith, discipline, resilience, and commitment to righteousness.
Residents have been urged to use the occasion to pray for lasting peace, security, unity, and prosperity in Niger State and Nigeria, while religious leaders are encouraged to promote patriotism, tolerance, moral values, and peaceful coexistence.
The state government reaffirmed its commitment to the New Niger Agenda, aimed at improving the welfare of citizens through transformative policies and programmes.
The government congratulates the Muslim Ummah and all residents on the beginning of 1448 AH and prays for a year filled with peace, progress, good health, abundant opportunities, and renewed hope.
Preliminary results from the local government elections held in Adamawa State on Saturday show that the opposition Peoples Democratic Party (PDP) has gained an early lead in 18 out of the 21 local government areas.
However, the elections experienced a notable degree of voter apathy across many polling units.
Notably, Governor Ahmadu Fintiri, who recently switched from the PDP to the All Progressives Congress (APC), was not present in the state during the voting. State officials have stated that he was engaged in a significant commitment outside of Adamawa State at that time.
In light of the initial results, State Commissioner for Information, Leader Leneke, credited the PDP’s early success to effective grassroots campaigning, while indicating that the ruling APC had not engaged in campaigning to the same extent.
“The PDP governorship candidate and the chairmanship candidates were going out every day for campaigns, but the ruling APC was not doing the same. So, if the PDP wins the election today, it is due to its hard work,” The Punch quoted Leneke.
Leneke noted that the low voter turnout was partly driven by a historic perception among rural populations that local government polls automatically favor the party in power. He also stated that heavy rainfall after 1:00 p.m. further disrupted voter participation.
Meanwhile, Deputy Governor Professor Kaletapwa Farauta expressed satisfaction with the exercise after visiting the Karewa Primary School polling unit and other centers. Farauta described the turnout as impressive and orderly, praising the electorates for their peaceful conduct and urging the Adamawa State Independent Electoral Commission (ADSIEC) to maintain professional standards.
Some voters also reported that material distribution and simultaneous accreditation began smoothly around 8:00 a.m. at locations like Jambitu unit 002.
Conversely, opposition candidates have alleged widespread irregularities. At Girei I Ward, observers noted that seven polling units were without election officials and voters by 11:00 a.m. In Song Local Government Area, officials were present in only three township units but recorded no voter turnout.
The African Democratic Congress (ADC) chairmanship candidate for Demsa Local Government Area, Dennis Kakaba, strongly criticized the process, alleging that voting occurred in only eight out of the 172 polling units in his council.
“There is no local government election in Adamawa State. They wrote the results last week and are pretending that an election has taken place. It is a shame for democracy,” Kakaba stated.
Despite the criticism and low turnout, APC Publicity Secretary Dogo Victor expressed confidence that the ruling party would emerge victorious once the final results are officially computed and released by ADSIEC.
The electoral commission had earlier confirmed that 11 political parties, including the APC, PDP, ADC, SDP, YPP, and the Labour Party, participated in the local government contests.
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