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.
Nigerian dancer cum entertainer, Iweh Odinaka, popularly known as Poco Lee, has spoken about his ordeal following his release on bail in the United Kingdom.
Naija News recalls that Snaresbrook Crown Court had earlier fixed September 15 for plea and trial preparation in Poco Lee’s sexual offence case.
The case stems from Poco Lee’s visit to the UK in August for the Davido and Friends concert, which was held at the Crystal Palace Bowl in London on August 14.
However, during a video call with social commentator, VeryDarkMan, Poco Lee said his main concern while he was away was the welfare of his associates and the impact of his absence on their business activities.
The dancer maintained that he is innocent of the sexual allegation and his mind is pure.
He said, “I was just being myself. God sees my heart. My only worries were about my people. Jago could not do anything business, and I didn’t want to stress anyone.
“If I was inside there and I did what I was accused of, I would have felt I was paying for my sins, but since I knew I didn’t do what I was accused of, my mind is pure.
“Nobody would have wanted to associate themselves with something like that, but Burna Boy stood by me, Jago and some of my other guys.”
VeryDarkMan, who shared the video call on social media, also praised Nigerian singers, Burna Boy and Rahman Jago for their support.
In the caption accompanying the video, VDM wrote: “I just got off a video call with @rahman_jago_ and @poco_lee. I guess the next narrative will be this is AI. THERE IS A REASON WHY I BRAG WITH INTEGRITY, I AM NOBODY’S mate, WHEN I talk take it to the bank.”
The Rivers State House of Assembly has passed the state’s ₦1.8 trillion 2026 Appropriation Bill.
Daily Voice reports that the bill was unanimously passed by 26 lawmakers during the Assembly’s resumed sitting in Port Harcourt.
Once assented to by Governor Siminalayi Fubara, the budget will provide basis for the state government’s expenditure and implementation of programmes and projects.
More to come…
The All Progressives Congress (APC) has widened its lead over the Accord Party in a fresh results update released by the APC Social Media and Situation Room Team during the ongoing Osun State governorship election.
The update, released at 3:40 p.m., showed below.
According to the update, the figures were compiled from 508 polling units so far.
The latest figures put the APC ahead of Accord by 1,320 votes, representing a notable increase from the earlier margin reported by the party’s situation room.
The figures indicate a closely fought contest between the APC and Accord, with the two leading parties separated by just over 1,000 votes based on the results presented.
The APC Situation Room described the figures as “real-time updates”, suggesting that additional results are still expected from other polling units across the state.
However, the figures have not been independently verified and should not be regarded as the official result of the election.
The Independent National Electoral Commission (INEC) remains responsible for the verification, collation and declaration of the final governorship election results.
With results from only 508 polling units reflected in the latest update, the overall outcome remains uncertain, particularly as more results are expected from across Osun’s local government areas.
The narrowing or widening of the margin in subsequent updates could significantly shape expectations about the eventual winner.
Note: The figures reported above are based solely on the APC Social Media and Situation Room Team’s update shown in the supplied image and remain subject to official verification by INEC.
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