NNPC recorded N1trn profit in eight months but remitted zero dividend to federation account

The FAAC report showed that the NNPC 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 NNPC (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 NNPC August 2025 FAAC report, the PSC
profit oil of N1.06 trillion was lower than the expected amount of N1.57
trillion.

NNPC 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 NNPC management fee (30
percent), frontier exploration funds (30 percent), and the federation share (40
percent).

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 NNPC management fee is retained by the company.

In the considered period, the report said the NNPC 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 NNPC met 15 percent of its revenue target to the federation, while
delivering 67 percent of the federation’s share of profit oil.