The Nigerian National Petroleum Company (NNPC) Limited got N1.06 trillion from production sharing contract (PSC) profit oil between January and August 2025, according to the firm’s Federation Account Allocation Committee (FAAC) report.
The FAAC report showed that the NNPC did not remit any dividend to the federation account during the period — despite a projected N2.16 trillion remittance for the eight-month period.
The PSC is an agreement between the NNPC (on behalf of the government) and oil companies that sets out how extracted resources are shared.
Under the arrangement, “profit oil” refers to what remains after deducting “cost oil” — the portion of output used to cover operating expenses — and is then split between the parties and the government.
According to the NNPC August 2025 FAAC report, the PSC profit oil of N1.06 trillion was lower than the expected amount of N1.57 trillion.
NNPC RECORDED HIGHEST EARNINGS IN AUGUST
The document showed that the NNPC’s monthly earnings from PSC profit oil fluctuated within the period, with the highest in August and the lowest in June.
In January, February, and March, the national oil company got N105.91 billion, N127.66 billion, and N204.96 billion from PSC profit oil, respectively.
The oil firm earned N121.93 billion in April, N129.39 billion in May, N22.77 billion in June, N84.48 billion in July, and N263.12 billion in August.
The FAAC report also showed that the oil company distributed the PSC profits across three major categories: the NNPC management fee (30 percent), frontier exploration funds (30 percent), and the federation share (40 percent).
The frontier funds are used for the promotion of exploration and development of oil and gas resources in all the frontier basins of Nigeria, while the NNPC management fee is retained by the company.
In the considered period, the report said the NNPC retained N318.05 billion as management fee, remitting N318.05 billion to the frontier exploration fund and N424.07 billion to the federation.
But the “calendarised interim dividend” line was left blank.
Speaking on the earnings in a post on X on Friday, Agora Policy, an Abuja-based think tank, said the oil firm’s year-to-date figures show that NNPC met 15 percent of its revenue target to the federation, while delivering 67 percent of the federation’s share of profit oil.
“NNPCL has not paid any calendarised interim dividend in 2025, which in 8 months should amount to N2.17t,” Agora Policy said.
The think tank said dividends (from 80 percent of NNPC’s profit) replaced revenue from the federation’s equity oil, which used to be the highest revenue source from the sector.
🚨NNPCL and August 2025 FAAC Data
N263.13b came from PSC profit oil in August 2025, out of which:
Federation received N105.25b or 40%
NNPCL got N78.94b or 30% as management fee
Another N78.94b or 30% was retained for Frontier Exploration Fund
NNPCL paid zero dividend pic.twitter.com/cgDa6XUnoD
— Agora Policy (@AgoraPolicy) September 19, 2025
