The Nigerian National Petroleum Company Limited (NNPCL) recorded a profit of ₦1.06 trillion from Production Sharing Contract (PSC) profit oil between January and August 2025, yet did not remit any calendarised interim dividend to the Federation Account during that period.
According to the August 2025 Federation Account Allocation Committee (FAAC) report:
- The target for PSC profit oil remittance was projected at ₦1.57 trillion, but actual revenue fell short.
- Monthly PSC earnings fluctuated considerably:
- January: ₦105.91 billion
- February: ₦127.66 billion
- March: ₦204.96 billion
- April: ₦121.93 billion
- May: ₦129.39 billion
- June: ₦22.77 billion (lowest in the period)
- July: ₦84.48 billion
- August: ₦263.12 billion (highest)
Under the terms of the PSC, profit oil is divided so that: - 30% is retained by NNPCL as a management fee
- Another 30% is allocated to the Frontier Exploration Fund
- The remaining 40% is supposed to go to the Federation Account
In numerical terms, over the eight months this translated to: - ₦318.05 billion for the management fee
- ₦318.05 billion for the Frontier Exploration Fund
- ₦424.07 billion owed to the Federation Account under the PSC’s revenue-sharing formula
However, the FAAC report shows that the “calendarised interim dividend” line item is blank, confirming that no dividend payment was made during the eight-month period under review.
An Abuja-based policy think-tank, Agora Policy, remarked on the discrepancy. According to them:
“NNPCL has not paid any calendarised interim dividend in 2025, which in 8 months should amount to N2.17t.”
The group further noted that while NNPCL delivered 67% of the Federation’s share of profit oil, its overall remittance to the Federation Account stood at only 15% of its projected obligation.
