The Federation Account Allocation Committee (FAAC) disclosed that the Nigerian National Petroleum Company (NNPC) Limited generated approximately N1.06 trillion from profit oil under production sharing contracts (PSCs) between January and August 2025. However, this fell short of the expected N1.57 trillion, according to the August 2025 FAAC report.
Despite projections of a N2.16 trillion remittance to the federation account over the eight months, NNPC did not contribute any dividends during this period. Under the PSC agreement, which governs resource sharing between NNPC (representing the government) and oil companies, “profit oil” is the revenue left after deducting “cost oil” for operational expenses. This profit is then divided among the parties and the government.
NNPC’s profit oil earnings fluctuated significantly, ranging from a low of N22.77 billion in June to a high of N263.12 billion in August. Monthly breakdowns include N105.91 billion in January, N127.66 billion in February, N204.96 billion in March, N121.93 billion in April, N129.39 billion in May, N84.48 billion in July, and N263.12 billion in August.
The profit distribution allocated 30% (N318.05 billion) to NNPC as a management fee, 30% (N318.05 billion) to the frontier exploration fund, and 40% (N424.07 billion) to the federation. However, the “calendarised interim dividend” section remained blank, indicating no remittance to the federation account.
Abuja-based think tank Agora Policy highlighted that NNPC delivered only 15% of its projected remittance to the federation account, despite achieving 67% of the federation’s profit oil share. “NNPCL has not paid any calendarised interim dividend in 2025, which in 8 months should amount to N2.17 trillion,” Agora Policy stated in an X post. The group also noted that dividends from 80% of NNPC’s profit have replaced equity oil revenue, previously the federation’s largest oil sector income source.
