ABUJA, NIGERIA — The Nigerian National Petroleum Company (NNPC) Limited expended ₦11 trillion in 2025 on pipeline security, joint venture operational overheads, and critical oil infrastructure protection on behalf of the Federal Government of Nigeria.
The disclosure was made by Mele Kyari, Group Chief Executive Officer of NNPC Limited, during an interactive legislative hearing hosted by the House of Representatives Joint Committees on Petroleum Resources (Upstream, Downstream, and Midstream) in Abuja.
Infrastructure Vulnerabilities and Cost Drivers
Addressing lawmakers on the fiscal and operational pressures facing the national oil company, Kyari emphasized that crude oil theft, pipeline vandalism, and illegal bunkering in the Niger Delta remain major impediments to Nigeria’s daily production targets.
To mitigate persistent supply disruptions and meet national quota allocations, NNPC Limited deployed a multi-layered security framework combining private security contractors, community-based surveillance teams, and state security agencies across key pipeline trunks, including the Nembe Creek Trunk Line (NCTL) and the Trans-Niger Pipeline (TNP).
Key drivers behind the ₦11 trillion expenditure include:
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Asset Protection & Surveillance Logistics: Continuous aerial, marine, and ground surveillance across thousands of kilometers of crude oil distribution pipelines.
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Environmental Remediation & Repairs: Direct capital expenditure required to repair repeatedly breached trunklines and clean up swamp land oil spills.
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Joint Venture Cash Call Operations: Meeting mandatory equity funding obligations for upstream joint venture assets to prevent production shut-ins.
Legislative Scrutiny and Fiscal Accountability
Members of the House Joint Committees raised questions regarding the classification and recovery mechanisms of the expenditure, particularly its direct deductions against state revenue remittances to the Federation Account Allocation Committee (FAAC).
Kyari clarified that as an agent operating under the provisions of the Petroleum Industry Act (PIA) 2021, NNPC Limited retains statutory authorization to incur necessary operational expenses to protect state-owned energy assets, subject to post-auditing and reconciliation with the Federal Ministry of Finance and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“The cost of securing these assets is a direct consequence of the security environment in our host communities,” Kyari stated during the hearing. “Without these interventions, production levels would have plummeted far below sustainable commercial thresholds, severely jeopardizing national revenue.”
Lawmakers mandated NNPC Limited to submit a comprehensive itemized audit breakdown of the ₦11 trillion spend to the committee within 14 business days to verify compliance with approved budgetary frameworks.
Sources & Citation Credits
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Primary Source / Original Reporting:
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TheCable Newspaper — “NNPC says it spent ₦11trn to protect oil assets in 2025 on behalf of FG” (Reported by News Desk / Legislative Correspondent, Abuja).
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Official Statements & Testimony:
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Mele Kyari, Group Chief Executive Officer, NNPC Limited — Oral Testimony & Submission before the House of Representatives Joint Committees on Petroleum (Upstream, Downstream, Midstream), National Assembly Complex, Abuja.
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Statutory & Regulatory Frameworks:
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Petroleum Industry Act (PIA) 2021 — Statutory provisions governing NNPC Limited operational deductions, asset maintenance, and Federation Account remittances.
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