Energy expert and petroleum economist, Prof. Wumi Iledare, in an interview on Arise, explained that the question about the N11.2 trillion should be about the value the country derived from the expenditure.
“Energy security — what do we mean by energy security? You are talking in terms of the value derived from that N11.2 trillion. The magnitude must be questioned. And those are professional scepticism that NNPC is willing to look at.
“So the basic question then is, what did you derive from that N11.2 trillion? From a petroleum economic point of view, you could decide to spend money to produce an additional barrel or decide to spend money to make sure there is continuous flow of production from the asset that you have,” he said.
Also in an online interview, other energy experts, including the Managing Partner of BBH Consulting and Convener of the Public Interest Advocacy Network (PIAN), Barr. Ameh Madaki, and Chuks Emeka, an oil and gas consultant and public affairs analyst, provided fresh perspectives on the controversy surrounding the NNPCL’s N11.2 trillion spending.
On his part, Ameh described the spending as excessive and questioned the value of the pipeline surveillance system, alleging that the government could be using it to divert funds ahead of the 2027 general elections.
He said, “What is the value of all the network of pipelines in the Niger Delta that NNPC will claim to use N11.2 trillion on pipeline surveillance?
“Every discerning Nigerian knows that this unaccountable government is stashing funds away for the 2027 elections and massive vote-buying under the guise of a criminal pipeline surveillance system which has nothing to offer.
“How can you ask criminals to protect critical national assets? These levels of brigandage can only thrive in Nigeria, where criminality holds sway and impunity has been elevated to statecraft,” he said.
Also speaking, Emeka said the security of Nigeria’s oil and gas infrastructure was necessary but stressed the need for transparency and accountability over the amount being committed to the exercise.
“My position is that the security of Nigeria’s oil and gas infrastructure is absolutely necessary.
“We cannot afford a situation where pipeline vandalism, crude oil theft and attacks on critical infrastructure destabilise the Niger Delta, discourage investment and deprive the country of much-needed revenue.
“We must also be careful with the interpretation of the N11.2 trillion figure. From the 2025 audited accounts, it is reported as receivables from the Federation, covering advances and costs incurred on behalf of the government, including the protection of oil and gas assets.
“It should therefore not simply be presented as N11.2 trillion in fresh cash spent solely on pipeline security in 2025.
“That clarification notwithstanding, Nigerians are entitled to demand a detailed breakdown of these costs. How much actually went into surveillance? How much went to security operations?
“How much went to community-based surveillance and other interventions? What contracts were awarded, to whom, and what measurable results were achieved?” he queried.
Emeka noted that improved pipeline security appeared to have contributed to increased crude oil production.
He continued that “There is evidence that improved pipeline security has contributed to increased crude production. NNPC says average production rose significantly from the very low levels recorded in 2022, reaching about 1.71 million barrels per day in 2025.
“So, I would not argue against spending money to secure our pipelines. The issue is whether we are getting commensurate value for the money being committed.
“Nigeria needs a security model that protects the Niger Delta, keeps our production infrastructure operational and gives host communities a genuine stake in protecting these assets. But that model must also be transparent, independently auditable and economically efficient.
“At a time when Nigerians are facing significant cost-of-living pressures, every trillion naira committed by the government must be subjected to rigorous scrutiny. Security is necessary, but security spending should not become a blank cheque.
“The question Nigerians should be asking is not simply, ‘Why are we spending money to secure our pipelines?’ It is: ‘How much are we spending, who is receiving the money, what exactly are we paying for, and what measurable value is Nigeria getting in return?’”.
SOURCE: eaglefm.ng
