NNPC nets N445bn from PSC profit oil in 11 months — double its 2024 receipts

The Nigerian National Petroleum Company (NNPC) Limited received a total of N445.4 billion in management fees from production-sharing contract (PSC) profit oil from January to November 2025.

According to financial data from the November 2025 federation account allocation committee (FAAC) data, the amount represents the company’s 30 percent share of the N1.48 trillion generated from PSCs during the 11-month period.

The current figure also represents a 118.29 percent rise from the N204.04 billion generated from PSC management fees in the corresponding period of 2024.

Analysis of the 2024 data indicated that the NNPC generated a PSC profit oil of N680.15 billion.

The PSC is an agreement between the NNPC, on behalf of the government, and an oil company 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.

From these proceeds, 30 percent is often allocated to the management fee and another 30 percent to the frontier exploration fund, with the remaining 40 percent transferred to the federation account.

The management fee (30 percent) is retained by the NNPC for managing the PSCs.

According to the data, the N445 billion received is 31.6 percent lower than the targeted management fee of N651.31 billion in 11 months.

In January, February, and March, the NNPC got N31.7 billion, N38.3 billion, and N61.4 billion, as management fees, respectively.

In April, the oil firm earned N36.5 billion, N38.7 billion in May, N6.8 billion in June, N25.3 billion in July, and N78.9 billion in August.

Further analysis of the FAAC data showed that the national oil firm got N82.6 billion in September, N11 billion in October, and N33.6 billion in November.

In addition to PSCs, the NNPC also generates revenue from other crude oil sources, including joint venture (JV) operations and sole-risk fields.

During the period under review, the FAAC said the company remitted N445.4 billion to the frontier exploration fund and paid N593.87 billion to the federation.

Revenues retained by some major government agencies — popularly known as ‘Super Agencies’ — have become a subject of concern in recent times.

On October 9, 2025, the World Bank said funding allocated to Nigerian revenue-generating agencies was significantly higher compared to their counterparts in other African countries.

Prior to the World Bank’s revelation, the federal government, in January 2024, issued a circular directing an “automatic” 50 percent remittance of the total revenue of all its self-funded enterprises, otherwise known as Super Agencies.

Doubling down on the reform, on August 13, 2025, President Bola Tinubu directed the ministry of finance to review all deductions and revenue retention practices by the agencies.

Wale Edun, the minister of finance and coordinating minister of the economy, said the review will cover the NNPC, the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).