The Nigerian National Petroleum Company (NNPCL) says it loaned N220.495 to its three refineries for Quick Fix Maintenance project, tax obligations, among others.

The figures were contained in its 2025 Audited Financial Statement.

According to the report, the Kaduna Refining & Petrochemical Company Limited was loaned N77.588, while Port Harcourt Refining Company Limited got N2.58bn and Warri Refining & Petrochemical Company Limited got N113.327bn.

The spending is coming a year after the NNPCL signed a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for collaboration through a potential Technical Equity Partnership (TEP) in support of the completion and operation of the Port Harcourt and Warri Refineries.

It explained that “in 2025, a loan of N133.5 billion was granted to KRPC to finance invoice payments and tax obligations relating to the Quick Fix Maintenance project at KRPC As at the reporting date, the facility had an undrawn balance of N56bn.

“More so, the loan disbursed to WRPC amounting to N104.8 billion was provided to finance tax payments relating to the Quick Fix Maintenance project at WRPC. As at the reporting date, the facility had an undrawn balance of N2269bn. Similarly, a loan of N2607 billion was disbursed to PHRC for the purpose of settling outstanding invoices due to The NNPC Engineering and Technical Company (NETCO) and the Egyptian Projects Operation and Maintenance (EPROM) under the 9-month Operations and Maintenance (O&M) Contract for the Area 5 Plant.”

It added that the outstanding intercompany loan balance of N9,104,154,160 (trillion) and N1,660,388,959.28 (trillion) between NNPC Limited and NIDAS Shipping Services Limited was converted to investment on the conclusion of all legal formalities pursuant to the 2021 Technical Management Committee (TMC) approval.

It also explained that the total loan due from NNPC Energy Services Limited (Enserv) amounting to N211.6 billion is for the purpose of Keana drilling campaign, Chad Basin re-entry as well as other 3D Seismic acquisition projects.

It added that a N473.8bn loan to NNPC Gas Infrastructure Company Limited (NGIC) was granted to fund the Nigeria-Morocco Gas Pipeline cash call commitments, equity injection to AGPC, and finance the AKK Pipeline Project.

As at 31 December 2025, N25.7 billion interest is outstanding. As at the reporting date, the facility has an undrawn amount of 14.4 billion.

…Says FG owing N11.2trn

The report added that the federal government is owing N11.2trn and it is an expected loss allowance for FGN receivables.

“The Group applies the IFRS 9 general model for measuring expected credit losses (ECL) which uses a three-stage approach in recognising the expected loss allowance for FGN receivables. Receivables from FGN represent the outstanding payments due to the Group from the Federal Government of Nigeria. The receivable has been assessed for impairment and has remained in stage 1,” it explained.

Events after the reporting period

The report noted that the Presidential Executive Order 9 signed by President Bola Ahmed Tinubu on 18 February 2026, titled “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity” still had a financial impact on the company.

It however said at the date of authorisation of the financial statements, “the financial impact of the Executive Order had not been fully determined. Consequently, no adjustments have been recognised in these financial statements in respect of this matter.”

It also said the financial impact of the proposed Memoranda of Understanding (“MoUs”) with two Chinese engineering firms cannot yet be reliably estimated.

It explained that the agreements are intended to “support the restoration of refining capacity, improve operational efficiency, reduce ongoing operational losses and enhance domestic petroleum product supply within Nigeria. The arrangements are also expected to facilitate technical collaboration, engineering support, financing discussions and evaluation of alternative operating structures for the affected refinery assets.”

It added that as at the date of authorisation of the financial statements, the MoUs remain subject to ongoing negotiations, technical evaluations, due diligence procedures and execution of definitive agreements. (Daily Trust)