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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.
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BREAKING: Top Presidential Candidate Withdraws From 2027 Race; Reasons Emerge
The factional National Chairman of the Accord Party (A), Christopher Imumolen, has withdrawn from the 2027 presidential race and declared support for President Bola Tinubu’s re-election bid, according to Naija News.
Naija News reports that Imumolen announced the decision in a statement issued on Wednesday, saying it followed consultations with leaders and stakeholders within his faction of the party.
He explained that the need to preserve national unity, political stability and continued development informed his decision to abandon his presidential ambition.
According to him, personal aspirations must give way when the broader interest of the country requires cooperation among political leaders.
“The unity, stability and continued progress of Nigeria must take precedence over personal political ambition,” Imumolen said.
The former presidential aspirant listed 10 reasons for backing Tinubu, including what he described as their shared views on economic reforms, education, industrialisation, youth empowerment and national development.
He also praised the President’s leadership ability, political experience and commitment to progressive governance.
Imumolen said Tinubu had demonstrated an ability to identify and empower talented individuals while promoting inclusive leadership.
He expressed confidence that the administration’s economic and fiscal reforms would place Nigeria on the path of sustainable growth, despite the hardship currently facing many citizens.
The Accord chieftain argued that continuity in governance and consistency in policy implementation were important for strengthening public institutions and attracting investment.
He added that sustaining the government’s reform programme could support job creation and accelerate national development.
Imumolen maintained that his involvement in politics had always been driven by a desire to serve the country rather than merely occupy public office.
He stated, “My aspiration has always been to serve Nigeria and not merely to occupy public office.
“Whenever the national interest is better served through unity and strategic collaboration, I will always choose Nigeria above personal political ambition.”
He described his withdrawal and endorsement of Tinubu as a deliberate sacrifice made in what he considered the country’s best interest.
“Our decision to withdraw our presidential candidature and support President Bola Ahmed Tinubu is a deliberate sacrifice made in the interest of Nigeria,” he added.
Imumolen called on members of the Accord Party, his political supporters, professionals and other Nigerians to support Tinubu’s re-election campaign ahead of the 2027 general election.
He said collaboration with the President would offer a better opportunity to advance the policies and development objectives he had hoped to pursue through his presidential campaign.
Source: Naija News
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Government Declares Friday 7, August Public Holiday, Reason Emerges
Rwanda has declared Friday, August 7, 2026, a public holiday to mark Umuganura Day, a national harvest festival with roots stretching back to pre-colonial times.
Legit.ng reports that the announcement came from the Ministry of Public Service and Labour on Tuesday, August 4, 2026, and applies to workers across all sectors, both public and private.
The ministry said in its official statement:
“The Ministry of Public Service and Labour informs all employers and employees in both public and private sectors that Friday, August 7, 2026, will be a public holiday in celebration of Umuganura Day.”
What is Umuganura Day?
Umuganura is one of Rwanda’s most significant cultural observances. The festival gives thanks to God and ancestors for the bounty of the land and marks the collective effort of communities in cultivating it. Despite being called a harvest festival, it is observed before the harvest begins, a tradition rooted in the practice of elders tasting the fruits of the new season before any family member is permitted to do so.
The celebration starts within individual families and then expands into wider community gatherings where traditional foods, crafts, and performances are shared. Rwandan restaurants and cultural centres, both at home and abroad, typically mark the occasion with special offerings tied to the country’s culinary heritage.
Agriculture sits at the heart of why the day carries such weight. About 80% of Rwanda’s labour force is engaged in farming activities, which contribute roughly 40% of the country’s Gross Domestic Product. Tea and coffee are the country’s most important cash crops, making up around 80% of its agricultural exports.
History of Umuganura festival
Umuganura has survived considerable upheaval. Germany colonised Rwanda in 1899 as part of German East Africa, and Belgium took control in 1916 during World War I. The prolonged period of colonial rule disrupted the festival, and it went uncelebrated for many years. Rwanda gained independence in July 1962, and the country gradually rebuilt its national identity in the decades that followed.
Despite its ancient origins, Umuganura was only formally recognised as a public holiday in 2011. Beyond its cultural significance, the day also serves as an occasion to reflect on the country’s yearly achievements across the sectors that drive national development.
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BREAKING: President Tinubu Approves New Salary Package for Armed Forces Personnel
President Bola Tinubu has approved a new salary package for armed forces personnel.
In a statement on Tuesday, Bayo Onanuga, special adviser to the president on information and strategy, said the salary increase is between 30 and 80 per cent for the military personnel.
He added that about 250,000 personnel will benefit from the new deal, which will become effective from September 1.
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STATEHOUSE PRESS RELEASE
President Tinubu approves salary increases for armed forces personnel
President Bola Tinubu has approved salary increases of between 30 and 80 per cent for Nigeria’s armed forces personnel.
About 250,000 personnel are to benefit from the new deal.
Under the new arrangement, which becomes effective from September 1, officers above the rank of colonel will enjoy a 30 per cent salary increase. This applies to Brigadier-Generals, Major-Generals, Lieutenant Generals and Generals.
Personnel from colonel down to warrant officer will have a 50 per cent increase, while Private to Staff Sergeant will have an 80 per cent increase.
The pay package will increase the yearly salary bill for the country’s armed forces personnel from N660 billion to N924 billion.
President Tinubu has always praised the courage and sacrifices of members of the armed forces as they confront the scourge of banditry, kidnapping and terrorism in some parts of the country.
“The men and women who help to keep us safe in our homes must be supported and appreciated in the course of their duties to our nation.
“Our administration will continue to prioritise troop welfare and modernise the armed forces by providing the weapons and technological tools needed to discharge their duties.
“Our administration believes that no nation can achieve greatness without security. We therefore remain resolute in mobilising all military and law enforcement assets to eliminate security threats and protect the lives and property of all Nigerians
“ I urge our servicemen to take our gesture as a sign of our deep appreciation of the services they render to our fatherland. Together we shall prevail over the enemies intent on destroying the fabric of our nation”.
Bayo Onanuga
Special Adviser to the President
(Information and Strategy)
August 4, 2026
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