Analysis of the Nigerian National Petroleum Company Limited ,NNPCL, financial statement for the year ended December 2024 has uncovered that the company spent ₦7.1 trillion on what effectively amounts to fuel subsidy payments, despite official denials by the Federal Government.
The amount was categorized in the report under “Energy Security Expense”.
As explained in the statement, the energy security expense arises “when there is a differential between the exchange rate used to freeze the Premium Motor Spirit ,PMS, ex-coastal price and the prevailing exchange rate at the point of import settlement”.
“The amount is charged against what should have been paid to the federation accounts monthly”.
A sum of N 4.8 trillion was recorded to have been spent on the same item in 2023.
This development comes despite the President Bola Tinubu-led Nigerian government’s repeated claims that it has stopped subsidising the cost of petroleum in the country.
Data by the Nigeria Extractive Industry Transparency Initiative ,NEITI, shows that the highest amount spent on subsidy by the Nigerian government between 2005 and 2021 was incurred in 2011, when a sum of N2.1 trillion was paid.
In 2022, however, the Nigerian government paid N3.36 trillion as fuel subsidies, meaning that between 2005 and 2022, the highest subsidy paid stood at N3.36 trillion. With N4.8 trillion spent in 2023, the N7.1 trillion recorded for 2024 becomes the highest ever spent between 2005 and 2024, a twenty-year period.
Upon assuming office on May 29, 2023, President Bola Tinubu announced the removal of subsidy, citing the need to stop wastage in governance and increase revenue for development.
It remains unclear why the government incurred even higher subsidy-related expenses after the announced removal
Meanwhile, NNPC Limited also reported a Profit After Tax of ₦5.4 trillion on revenue of ₦45.1 trillion. The results, shared during its earnings call with analysts, underscore a year of strong operational delivery.
Building on this performance, the Company unveiled its strategic roadmap to drive sustained growth and support Nigeria’s energy transition through 2030. The plan prioritises increased oil and gas production and outlines a $60 billion investment pipeline across the energy value chain.
NNPC Limited’s results demonstrate strengthened financial resilience and enhanced operational efficiency:
Revenue: ₦1 Trillion, 88% year-on-year growth
Profit After Tax: ₦4 Trillion, 64% year-on-year growth
Earnings Per Share: ₦07, 64% year-on-year growth
“The earnings highlight the positive momentum of our ongoing transformation and the unwavering commitment of our workforce”, said Bashir Bayo Ojulari, Group Chief Executive Officer. “They offer a solid foundation for the ambitious growth ahead, in line with President Bola Ahmed Tinubu’s mandate, and reaffirm our commitment to delivering value to Nigerians”.
A Roadmap for Sustained Growth and Energy Security
NNPC Limited is accelerating investments across upstream operations, gas infrastructure, and clean energy to extend growth into the next decade. Key strategic targets include:
Increasing crude oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030.
Growing natural gas production to 10 bcf/d by 2027 and 12 bcf/d by 2030 and completing major gas infrastructure projects such as Ajaokuta-Kaduna-Kano ,AKK, Escravos-Lagos Pipeline System ,ELPS, and Obiafu-Obrikom-Oben ,OB3, pipelines to strengthen domestic supply and regional integration.
Mobilising $60 billion in investments across the upstream, midstream, and downstream sectors by 2030.
“Our transformation is anchored on transparency, innovation, and disciplined growth”, Ojulari added. We are positioning NNPC Limited as a globally competitive energy company capable of delivering sustainable returns while powering the future of Nigeria and Africa”.
NNPC Limited is Nigeria’s leading oil and gas company. Founded in 1977, the organisation underwent a major transformation in July 2022, becoming a fully commercial and profit-driven entity under the Petroleum Industry Act (PIA) of 2021. Today, NNPC Limited plays a pivotal role across the entire oil and gas value chain, from exploration and production to refining and distribution, driving growth and energy security for Nigeria and the continent.
