Group demands accountability over NNPCL's N7.13trn pipeline...

The Association of Energy Policy and Development Consultants (AEPDC) has called on the Nigerian National Petroleum Company Limited (NNPCL) to provide a detailed account of approximately N7.13 trillion reportedly spent on pipeline protection and energy security, urging greater transparency and independent oversight of the expenditure.

In a statement issued on Friday in Abuja and signed by its National President, Dr Ibrahim Danjuma, the association said figures contained in NNPCL’s 2024 financial records indicated total claims and under-recovery costs of about N17.5 trillion, of which N7.13 trillion was classified as expenditure on energy security and pipeline protection.

While acknowledging the strategic importance of protecting Nigeria’s oil and gas infrastructure, the consultants argued that spending of such magnitude should be supported by comprehensive disclosures, measurable outcomes and independent verification.

The association urged NNPCL to publish details of contractors engaged for the pipeline security projects, procurement processes adopted, contract duration, performance benchmarks and the value derived from the expenditure.

“Energy security cannot become a blanket description under which every expenditure is concealed from public scrutiny. Such an approach is inconsistent with globally accepted principles of corporate governance and transparency,” the statement said.

The group also questioned the outcome of investigations reportedly conducted by relevant committees of the National Assembly into energy security contracts, noting that the findings had yet to be made public.

According to the association, the absence of publicly available information continues to raise concerns over whether the substantial allocations represented prudent investments or reflected weaknesses in the management of petroleum resources.

“The silence surrounding this investigation only fuels public suspicion. Nigerians have every right to know whether the enormous sums claimed under energy security represent prudent investments or whether systemic weaknesses exist that require urgent corrective action,” it stated.

The consultants further expressed concern over what they described as growing public perceptions that opaque financial arrangements could be creating subsidy-like obligations through indirect mechanisms despite the Federal Government’s removal of petrol subsidy.

“It is difficult to convince Nigerians that subsidy has ended when massive claims continue to emerge under various classifications whose operational details remain largely unavailable for public scrutiny,” the statement added.

The association stressed that classifying the expenditure under energy security did not automatically imply wrongdoing but maintained that NNPCL, as a commercially driven national oil company, has a responsibility to uphold the highest standards of transparency, accountability and corporate governance through verifiable public disclosures.

It also challenged the leadership of NNPCL Group Chief Executive Officer, Bayo Ojulari, to strengthen public confidence by promoting timely financial disclosures, accountable management and stronger governance practices.

According to the group, if the company’s leadership is unable to restore confidence through greater transparency and accountability, it should consider taking appropriate steps in the interest of the institution and the country.

The consultants also urged the Federal Government to strengthen oversight of NNPCL by ensuring that expenditure on pipeline surveillance, energy security and strategic petroleum infrastructure is subjected to periodic independent audits and public reporting.

It further called on the National Assembly to intensify its oversight responsibilities and ensure Nigerians have access to adequate information on how resources allocated to protecting the nation’s petroleum assets are utilised.

The association said restoring public confidence in NNPCL would require institutional transparency, rigorous legislative oversight and demonstrable accountability in the management of Nigeria’s oil and gas resources.