ABUJA — Spending by NNPC Ltd on new exploration fell by 87.7 per cent in 2025, from N640.5 billion in 2024 to N78.8 billion, according to the company's latest audited financial statements.

The report shows gas flaring charges fell by 62.2 per cent to N499 billion, made up of N247.8 billion in flare fees and N251.2 billion in penalties. The fees are charged under Section 104 of the Petroleum Industry Act when operators exceed limits approved by the Nigerian Upstream Petroleum Regulatory Commission.

NNPC paid N11.56 trillion in royalties, rentals and flare obligations during the year, compared with N2.83 trillion in 2024. Helped by a N1.18 trillion write-back of excess provisions, its outstanding liabilities in this area fell by 86.2 per cent to N1.27 trillion. Royalty charges rose 4.1 per cent to N4.66 trillion, and the levy paid to the Niger Delta Development Commission rose 29.2 per cent to N514.7 billion.

Group revenue fell by 23.4 per cent, from N45.08 trillion to N34.52 trillion. The three state-owned refineries are carried in the books at a combined N2.72 trillion.

The drop in exploration spending comes as work in frontier basins such as Kolmani, in Bauchi and Gombe States, has slowed. Under Executive Order 9 of 2026, President Bola Tinubu moved the 30 per cent Frontier Exploration Fund from NNPC to the Federation Account.