The Nigerian National Petroleum Company Limited (NNPCL) is facing increasing public scrutiny over the N7.13 trillion it recorded as energy security expenditure in its 2024 audited financial statements.

According to the report, the spending falls under the Petroleum Industry Act (PIA) 2021, which allows costs incurred in maintaining energy security to be charged to the Federation.

The company explained that part of the expense arose from the gap between the exchange rate used to fix petrol prices and the actual exchange rate at the point of import settlement, creating what it described as under-recovery.The audit also showed that the Federal Government owes NNPCL about N17.5 trillion, covering energy security costs and other receivables.However, the company has not provided a detailed breakdown of how the funds were spent, despite enquiries from the media.

The African Democratic Congress (ADC) has demanded full disclosure of all energy security and pipeline surveillance contracts awarded since President Bola Tinubu assumed office, arguing that such a large expenditure requires public accountability.

Former Vice President Atiku Abubakar also criticised the government, alleging that fuel subsidy was not truly removed but merely renamed under energy security expenses.Meanwhile, business leader Dele Kelvin Oye described the liability as fuel subsidy in another form and called for a forensic audit.Energy experts, including Prof.Dayo Ayoade and Prof.

Wumi Iledare, said spending on energy security can be legitimate, but stressed that NNPCL must clearly explain what the expenditure covered, whether proper corporate approvals were obtained, and what measurable benefits the country gained.They maintained that transparency and accountability are necessary to sustain public confidence in the management of Nigeria's petroleum sector.