NNPCL Spend N17.5tn To Secure Fuel Pipeline And Oda Tins For 12 Months

Di Federation don rack up N17.5tn wey e dey owe di Nigerian National Petroleum Company Limited (NNPCL) for pipeline protection and energy-security operations wey di oil company run on behalf of di country for di financial year wey end 2024. Analysts dey call for forensic audit of di N17.5tn spending as dem dey worry about di costs of pipeline protection and energy security, pointing to persistent leakages, low crude production, and di opaque system inside di national oil company. NNPC 2024 financial statements show say N7.13tn of di money na energy-security costs wey dem use keep petrol prices stable whenever di gap between exchange rate and di ex-coastal price of refined petrol wide. Another N8.67tn dey for under-recovery on refined petroleum products while N8.84tn dey for other receivables from di Federation like advances and extra security costs. Di report yan say di company don make profit after tax of N5.4tn for 2024, up from N3.297tn in 2023, show 64% increase thanks to higher production, cost-cutting, and better operational efficiency.

Experts dey shock as N17.5tn na huge money to spend in one year on pipeline security and energy costs, dey call for proper audit. Jeremiah Olatide of Petroleumprice.ng yan say di spending na proof of deep leakages and corruption inside NNPCL, especially as Nigeria still dey produce just 1.4–1.5 million barrels per day, far below di 2.5–3 million barrels per day potential. Kelvin Emmanuel, public finance analyst, add say di N7.1tn used for supposed pipeline security in 2024 fit mean say militants dey dey get crude daily for pipeline protection contracts. Dem insist say government must open di contracting process, bring third-party verification for security payments, and overhaul di opaque pipeline protection system wey don dey unchanged for more than ten years.