Emmanuel Addeh in Abuja
The Nigerian National Petroleum Company Limited (NNPC) slashed additions to its exploration and analysis belongings by 87.7 per cent to N78.8 billion in 2025, from N640.5 billion in 2024, in accordance to its newest Annual Financial Report (AFS).
In the identical vein, the nationwide oil firm’s fuel flaring prices in the course of the interval into consideration fell by 62.2 per cent from N1.32 trillion in 2024 to N499 billion in 2025, the monetary report indicated.
However, the decline in exploration funding is probably not unconnected with the slowdown within the seek for hydrocarbons in underexplored areas, together with the Chad Basin, Benue Trough, Bida Basin and Sokoto Basin, all within the northern a part of Nigeria.
Despite billions of naira dedicated to the programme, initiatives similar to Kolmani, straddling Bauchi and Gombe states; drilling and appraisal actions such because the Wadi-2 exploratory properly in Borno and exploration actions and seismic information gathering in Nasarawa state have but to attain breakthrough ranges.
To compound the matter. President Bola Tinubu’s Executive Order 9 of 2026, has now suspended NNPC’s assortment and administration of the 30 per cent Frontier Exploration Fund (FEF) and ordered that the cash be remitted immediately to the Federation Account for distribution among the many federal, state and native governments.
On fuel flaring, the group’s whole prices declined to N499 billion from N1.32 trillion in 2024. The quantity comprised N247.8 billion in flare charges, down from N708.6 billion, and N251.2 billion in penalties for flaring above permitted limits, in contrast with N610.4 billion beforehand.
The charges are statutory prices based mostly on limits permitted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) below Section 104 of the Petroleum Industry Act (PIA). Despite the discount, penalties accounted for roughly half of the group’s whole fuel flaring prices.
At the dad or mum firm degree, fuel flaring prices dropped to N317.3 billion from N1.04 trillion.
The decline got here as NNPC paid N11.56 trillion to settle royalties, leases and fuel flare obligations in the course of the 12 months, greater than 4 occasions the N2.83 trillion recorded in 2024.
The discount in excellent liabilities additionally mirrored a N1.18 trillion write-back of extra provisions from earlier years. Consequently, the group’s excellent legal responsibility below the class fell by 86.2 per cent to N1.27 trillion from N9.21 trillion.
Royalty prices, nonetheless, elevated by 4.1 per cent to N4.66 trillion, whereas the levy payable to the Niger Delta Development Commission (NDDC) rose by 29.2 per cent to N514.7 billion.
Overall, whole additions throughout intangible asset courses fell by 88.6 per cent to N79 billion, from N692.7 billion in 2024, whereas additions to mineral rights had been nil, in contrast with N46.3 billion a 12 months earlier.
Mineral rights signify rights related to exploring for or extracting oil and fuel from specified acreage.
In Nigeria’s petroleum trade, these rights are linked to legally recognised entitlements to undertake petroleum operations, topic to relevant legal guidelines, lease phrases and regulatory approvals. The absence of additives means NNPC recorded no new expenditure in that asset class in the course of the 12 months.
The report additionally confirmed that mineral rights valued at N16.4 billion relating to oil mining leases 64 and 66 had been eliminated after being absolutely impaired. An impairment happens when an asset’s recorded worth is not thought-about recoverable below relevant accounting guidelines.
The report additionally disclosed decrease spending on chosen operational actions, as rig web site and stimulation bills declined to N2.9 billion from N16.5 billion earlier recorded by the nationwide oil firm. Besides, the AFS confirmed that allotted technical and manufacturing prices fell to N144.4 billion from N489.6 billion, whereas crude dealing with and port prices declined to N1.06 trillion from N1.52 trillion.
However, direct properly bills elevated by 65.9 per cent to N4.15 trillion from N2.50 trillion, whereas depreciation of oil and fuel properties rose by 15 per cent to N3.71 trillion. Spending on security, environmental and air pollution management actions additionally elevated to N74.5 billion from N2.3 billion.
In the identical vein, labour prices charged to the price of gross sales rose greater than fourfold to N254.5 billion from N59.7 billion, whereas insurance coverage and safety bills elevated to N213.9 billion from N182.2 billion.
Elsewhere, the NNPC assertion confirmed that investments in subsidiaries within the dad or mum firm’s accounts declined to N6.23 trillion from N6.65 trillion, with the three refineries carried at a mixed worth of N2.72 trillion.
The wider group recorded weaker income efficiency, with income falling by 23.4 per cent to N34.52 trillion in 2025 from N45.08 trillion a 12 months earlier. In the identical vein, Anoh Gas, by which NNPC holds a 50 per cent curiosity, recorded a lack of N4.86 billion.
