The Nigerian National Petroleum Company (NNPC) Limited got N1.06 trillion from production sharing contract (PSC) profit oil between January and August 2025, according to the firm’s Federation Account Allocation Committee (FAAC) report.

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.

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.