Former Vice President Atiku Abubakar has demanded an immediate, transparent, and independent investigation into the staggering N17.5 trillion reportedly spent by the President Bola Ahmed Tinubu administration on pipeline security and related costs within a single fiscal year.
Atiku described the expenditure as unprecedented, deeply troubling, and a “moral indictment” on the federal government, warning that such a vast outlay—coming at a time of widespread economic hardship—raises fundamental questions about accountability and governance.
In a statement issued by the Atiku Media Office on Sunday night, the former Vice President noted that the expenditure figure, as reflected in the Nigerian National Petroleum Company Limited’s (NNPCL) 2024 audited financial statements, exceeds Nigeria’s total spending on fuel subsidy for more than a decade. According to him, this scale of expenditure makes the report one of the most significant financial controversies in Nigeria’s recent history.
A Spending Pattern That Raises Concerns
Atiku emphasized that the N17.5 trillion allocation dwarfs the N18 trillion spent on fuel subsidy over a 12-year period—an intervention that, in his words, directly cushioned economic pressure for millions of Nigerians by stabilising transportation costs and keeping food prices within reach. By contrast, he argued, the current administration has committed nearly the same amount in one year to pipeline security—an area that has long been plagued by opacity, overlapping contracts, and political patronage.
He described the development as alarming, alleging that the bulk of the funds appears to have been channeled to companies and individuals with close political ties to President Tinubu. The statement characterised the expenditure as “one of the most brazen financial scandals in our nation’s history,” adding that such spending cannot be justified under any fiscally responsible framework, especially amid declining living standards and a weakened currency.
Allegations of Opaqueness and Cronyism
According to the statement, the administration’s elimination of petrol subsidy—presented as a bold step toward fiscal responsibility—has now been overshadowed by what Atiku called “grand larceny dressed as public expenditure.”
He argued that while Nigerians now purchase petrol at over N1,000 per litre in several states, the NNPCL recorded massive expenditures under categories such as “energy-security costs” and “under-recovery”—terms he said remain vague and insufficiently explained to the public.
Citing NNPCL’s audited figures, Atiku pointed out that:
-
N7.13 trillion was spent on energy-security costs; and
-
N8.67 trillion was spent on under-recovery within the same financial year.
These amounts, he said, are deeply questionable given the administration’s repeated insistence that petrol subsidy has been fully removed.
Atiku stressed that Nigerians deserve full disclosure, not only to ascertain the legitimacy of these allocations but also to determine whether the expenditures align with national priorities during a period of severe inflation, rising food insecurity, and weakening consumer purchasing power.
Context From NNPCL’s Financial Performance
The controversy emerges against the backdrop of strong financial reporting by the NNPCL. In its recently released audited financial statement for the year ended 2024, the national oil company posted:
-
N45.1 trillion in revenue, representing an 88% year-on-year increase; and
-
N5.4 trillion in Profit After Tax, a 64% jump from 2023.
The figures reflect consistent growth, as NNPCL recorded a net profit of N3.297 trillion in 2023—a 28% increase from the N2.548 trillion posted in 2022.
However, Atiku argues that these profit figures do not in any way reduce the need for scrutiny, especially when expenditure items of such magnitude appear inconsistent with the government’s stated fiscal direction.
A Call for Accountability
Atiku insisted that the only way to restore public trust is through an independent probe conducted by credible, neutral institutions. He emphasized that such an inquiry must not be handled by individuals or bodies with political or institutional ties to the Tinubu administration.
He maintained that Nigerians have the right to know who received the contracts, how much was paid to each contractor, what specific services were delivered, and whether the spending aligns with global benchmarks for pipeline surveillance and energy infrastructure protection.
Without such transparency, Atiku warned, the allegations surrounding the N17.5 trillion expenditure could further erode investor confidence, damage Nigeria’s global reputation, and worsen the already fragile economic environment.
The issue is likely to intensify national debates around public finance management, subsidy removal, and the governance of Nigeria’s petroleum resources as the country heads into another fiscal cycle.
