How NNPC Made N1trn Profit In Eight Months But Remitted Nothing To Federation Account

The Federation Account Allocation Committee (FAAC) has revealed that the Nigerian National Petroleum Company (NNPC) Limited earned about N1.06 trillion from production sharing contract (PSC) profit oil between January and August 2025.

Despite this, the oil firm did not remit any dividend to the federation account within the period, even though projections had estimated about N2.16 trillion in remittances.

A PSC is an arrangement between NNPC, acting for the federal government, and oil companies.

Under the deal, oil produced is split into “cost oil” — which covers operating expenses — and “profit oil,” which is then shared between the parties.

The August 2025 FAAC report revealed that the N1.06 trillion recorded was well below the N1.57 trillion initially expected.

It also showed that NNPC’s profit oil earnings varied widely across the eight months, peaking in August and dipping to its lowest in June.

Between January and March, NNPC received N105.91 billion, N127.66 billion, and N204.96 billion respectively.

It then earned N121.93 billion in April, N129.39 billion in May, just N22.77 billion in June, N84.48 billion in July, and a sharp rise to N263.12 billion in August.

The report further explained how the PSC profits were shared: 30 percent went to NNPC as management fee, another 30 percent to the frontier exploration fund, and 40 percent to the federation.

Over the eight months, this translated to N318.05 billion retained by NNPC as management fee, N318.05 billion allocated to frontier exploration, and N424.07 billion to the federation.

However, the section meant for “calendarised interim dividend” contributions was left empty.

Commenting on the figures, Abuja-based think tank Agora Policy said NNPC’s performance so far shows it has only delivered 15 percent of its projected remittance to the federation account, even though it achieved 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,” the group noted in a post on X.

Agora Policy also reminded that dividends from 80 percent of NNPC’s profit had replaced equity oil revenue, previously the federation’s biggest source of income from the oil sector.

KanyiDaily recalls that the NNPC recently appointed Andy Odeh as its new Chief Corporate Communications Officer and Morenike Adewunmi as Chief Relations Officer.