Nigeria's $8B oil security costs spark controversy
State oil company NNPC said it incurred the cost to protect oil facilities.
Nigeria's state oil company disclosed spending $8 billion to secure its energy infrastructure, sparking controversy and calls for an investigation into the funds' usage. The country, Africa's top crude oil producer, exports 90% of its foreign exchange earnings from oil sales. However, oil revenue has been hindered by theft and pipeline vandalism, resulting in a loss of about $300 billion in recent years.
The Nigerian National Petroleum Company (NNPC) is often at the center of allegations of misuse and diversion of oil money. Analysts and government critics are now questioning the company's $8 billion security costs in 2025, a 26% increase from the previous year. Critics argue that the total does not specify how the funds were spent, who received them, or for what work.
President Bola Tinubu recently ended a fuel subsidy scheme that cost $10 billion in 2022. The NNPC did not respond to requests for comment. Oil and gas revenue revenues fell 24% year-on-year due to lower crude oil prices, which preceded the Iran war. The NNPC owns a 5,000 km crude oil and petroleum products pipeline network and recorded more than a dozen breaks along its pipelines last year.
Despite facing multiple inquiries in the past, the NNPC remains a significant economic player for Nigeria. Recent drops in attempted pipeline damage highlight the improvements in security measures, with a 87% decrease in disruptions over the past year.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
