NNPC Limited reports ₦1.06 trillion profit from oil contracts but no dividend paid to Nigeria.
Analysts warn the missed payments deepen the country’s revenue crisis and raise transparency concerns.
The Nigerian National Petroleum Company (NNPC) Limited has declared profits of ₦1.06 trillion from production sharing contract (PSC) oil between January and August 2025, but has yet to remit any dividend to the federation account, raising fresh concerns over accountability and fiscal transparency.
Figures from the August FAAC report show that the profits fell short of the ₦1.57 trillion target for the period, while the projected ₦2.16 trillion interim dividend expected by the federal purse has not been paid.
Under PSC arrangements, “profit oil” is what remains after deducting “cost oil” used to cover production expenses. According to the FAAC document, NNPC allocated:
- ₦318.05 billion (30%) to management fees,
- ₦318.05 billion (30%) to the frontier exploration fund, and
- ₦424.07 billion (40%) to the federation.
However, the line for dividend remittance was left blank, leaving Nigeria without one of its most significant traditional sources of oil revenue.
Earnings breakdown (Jan–Aug 2025)
- January – ₦105.91bn
- February – ₦127.66bn
- March – ₦204.96bn
- April – ₦121.93bn
- May – ₦129.39bn
- June – ₦22.77bn (lowest)
- July – ₦84.48bn
- August – ₦263.12bn (highest)
Agora Policy, an Abuja-based think tank, strongly criticized the development, warning that the failure to remit dividends deepens Nigeria’s ongoing revenue crisis.
“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 calendarized interim dividend in 2025, which in 8 months should amount to ₦2.17 trillion,” the group stated.
Historically, dividends from 80% of NNPC’s profit were expected to replace inflows from equity oil, once the single largest revenue source for the federation account. However, as the FAAC report highlights, that revenue stream has effectively come to a standstill.
