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NNPC posts N1.06trn profit from PSC profit oil January–August 2025
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Despite 40% rise in May, no dividend remitted against N2.16trn projection
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Think tank warns NNPC delivered just 15% of its revenue target to Nigeria
The Nigerian National Petroleum Company (NNPC) Limited has reported a staggering N1.06 trillion profit from production sharing contract (PSC) oil between January and August 2025 but failed to remit a single naira as dividend to the federation account.
According to the August FAAC report, the figure falls short of the expected N1.57 trillion for the period, raising concerns over accountability and fiscal transparency in Africa’s largest oil producer.
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Despite the windfall, the NNPC ignored a projected N2.16 trillion interim dividend expected by the federal purse, leaving the federation without its biggest traditional oil revenue inflow.
The PSC arrangement — where “profit oil” is what remains after deducting “cost oil” used to cover production expenses — has historically been a key driver of Nigeria’s oil earnings. But the FAAC document shows the NNPC allocated 30% of the profits to management fees, 30% to frontier exploration funds, and 40% to the federation, while the dividend line was left blank.
The company recorded its highest earnings in August, raking in N263.12 billion, after a steep decline to N22.77 billion in June. Earlier months brought in N105.91 billion (January), N127.66 billion (February), N204.96 billion (March), N121.93 billion (April), N129.39 billion (May), and N84.48 billion (July).
In total, the NNPC retained N318.05 billion as management fees, channelled another N318.05 billion to the frontier exploration fund, and released N424.07 billion to the federation but dividends were withheld.
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Agora Policy, an Abuja-based think tank, slammed the development, warning that Nigeria’s revenue crisis deepens when its main oil corporation withholds constitutionally expected remittances.
In a statement on Friday, the group said: “Year-to-date figures show that NNPCL has met just 15% of its revenue target to the Federation, while delivering only 67% 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 N2.17 trillion.”
Dividends from 80% of NNPC’s profit were expected to replace revenue from equity oil, which previously formed the single largest inflow into the federation account. But as the FAAC report shows, that revenue stream remains stalled.
