The Nigerian National Petroleum Company Limited (NNPCL) 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 NNPCL 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 NNPCL (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 NNPCL August 2025 FAAC report, the PSC profit oil of N1.06 trillion was lower than the expected amount of N1.57 trillion.
NNPCL 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 NNPCL management fee (30 per cent), frontier exploration funds (30 per cent), and the federation share (40 per cent).
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 NNPCL management fee is retained by the company.
In the considered period, the report said the NNPCL 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 NNPCL met 15 per cent of its revenue target to the federation, while delivering 67 per cent 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 per cent of NNPCL’s profit) replaced revenue from the federation’s equity oil, which used to be the highest revenue source from the sector.
