Energy security gulps N7.1trn as NNPC plans 226 CNG filling stations, others

By Udeme Akpan, Energy Editor

THE NNPC Limited committed N7.1 trillion into energy security, including petrol subsidy in 2024, up from N4.8 trillion in 2023, indicating an increase of 47.92 per cent.

The company released its 2024 consolidated and separate financial statements, reporting a profit after tax (PAT) of N5.4 trillion in its audited financial statement, covering the 12 months of 2024, Monday this week.

NNPC Limited said the “energy security expense” occurs when there is a difference between the exchange rate used to set the petrol ex-coastal price and the actual exchange rate at the time the import payment is settled.

According to NNPC, the amount is owed to the NNPC group (comprising subsidiary firms), as it is recovered and deducted from the monthly remittances.

Also, the report noted that the cost incurred by “NNPC Limited (Group) as the energy supplier of last resort for energy security reasons, and all associated costs shall be on the account of the Federation”.

The company said: “However, the cost of importing this PMS is usually much higher than this regulated price. The under recovery is essentially the difference between the actual landing cost of the product and the regulated price. This balance is used to reduce the cost of sales of the Group.

“The corresponding entry is either used to reduce the liability due to the federation or used as a receivable from the federation.”

However, to further enhance Nigeria’s energy security, the company said it has already opened 12 Compressed Natural Gas, CNG stations and plans are underway to open 226 more stations by 2030.

Also, NNPC disclosed that it generated N45.1 trillion in revenue from “contracts with customers,” for crude oil, petroleum products, natural gas, power, and services.

NNPC reported earning N29.2 trillion from crude oil sales in 2024 — more than double the N14.07 trillion from the same revenue stream in 2023.

The oil firm also earned N9.68 trillion from petroleum product sales in 2024, up from N7.14 trillion in 2023, adding that its petroleum product revenue was generated from sale of petrol, dual-purpose kerosene (DPK), automotive gasoline oil (AGO), naphtha, lubricants, as well as other related products.

The report showed that a total of 22 subsidiaries and one joint venture (JV), classified as “related parties,” owed the NNPC N30.29 trillion combined in financial transactions in 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.

“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.”

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