The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it committed N7.1 trillion to energy security in 2024, including petrol subsidy payments. This represents a 47.92 per cent increase compared to the N4.8 trillion spent in 2023.
The figures were contained in the company’s consolidated and separate audited financial statements for 2024, released earlier this week. The report showed that NNPC recorded a profit after tax of N5.4 trillion for the year.
According to the company, the energy security expense arises from differences between the exchange rate used to set the petrol ex-coastal price and the actual exchange rate at the time import payments are settled. These costs, which are recovered from monthly remittances, are owed to the NNPC Group and its subsidiaries.
The financial statement further explained that NNPC, acting as the energy supplier of last resort, incurs costs that are ultimately borne by the Federation. The company noted that the actual landing cost of imported petrol is typically higher than the regulated price, creating an “under-recovery.” This balance is used to reduce the Group’s cost of sales and is either offset against liabilities due to the Federation or recorded as receivables.
In addition to subsidy-related spending, NNPC highlighted ongoing investments to strengthen Nigeria’s energy security. The company has already commissioned 12 Compressed Natural Gas (CNG) stations and plans to establish 226 more by 2030.
Revenue generation was also robust in 2024. NNPC reported N45.1 trillion from contracts with customers across crude oil, petroleum products, natural gas, power, and services. Crude oil sales accounted for N29.2 trillion, more than double the N14.07 trillion recorded in 2023. Petroleum product sales contributed N9.68 trillion, up from N7.14 trillion in the previous year. The revenue streams included petrol, dual-purpose kerosene (DPK), automotive gas oil (AGO), naphtha, lubricants, and other related products.
The report also revealed that 22 subsidiaries and one joint venture classified as related parties owed NNPC a combined N30.29 trillion in financial transactions during 2024.
It stated: “Through a combination of robust strategic initiatives, NNPC Limited achieved significant milestones across the upstream, midstream, and downstream sectors of the energy value chain in 2024.
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“We recorded an increase in national production levels, peaking at 1.8 mbpd, the highest since January 2022. This was made possible by the rollout of Accelerated Production Recovery Initiatives (APRI) championed by NNPC Limited.
“Other notable accomplishments were: The official unveiling of Utapate crude oil blend, which was very well received by the international crude oil market due to its highly attractive qualities.
“The Final Investment Decision (FID) for the Ubeta gas field was made, amounting to $550 million. This is expected to produce about 350 mmscf/day of gas and 10,000 bbls/day of associated liquids.
“The commissioning of the AHL Gas Processing Plant 2, the ANOH Gas Processing Plant (AGPC), and the ANOH-OB3 CTMS Gas Pipeline Project, with a combined output estimated at 500mmscf/d, is expected to increase gas supply to the domestic market, foster a more favourable investment.”