The Nigerian National Petroleum Company (NNPC) Limited received N445.4 billion in management fees from production-sharing contract (PSC) profit oil between January and November 2025, marking more than double the N204.04 billion earned during the same period in 2024.
Gatekeepers News reports that according to November 2025 FAAC (Federation Account Allocation Committee) data, the amount represents the NNPC’s 30 percent share of N1.48 trillion generated from PSCs during the 11-month period.
Analysis of 2024 data shows the company generated a total PSC profit oil of N680.15 billion.
A PSC is an agreement between the government, represented by the NNPC, and an oil company that defines how extracted resources are shared. Profit oil is the portion remaining after deducting cost oil—used to cover operational expenses—and is then split among the oil firm, the government, and the NNPC. Typically, 30 percent of profit oil is allocated as a management fee, another 30 percent to the frontier exploration fund, and the remaining 40 percent is remitted to the federation account.
The NNPC’s N445 billion management fee is 31.6 percent lower than the targeted N651.31 billion for the same period. Monthly receipts included:
- January — N31.7bn
- February — N38.3bn
- March — N61.4bn
- April — N36.5bn
- May — N38.7bn
- June — N6.8bn
- July — N25.3bn
- August — N78.9bn
- September — N82.6bn
- October — N11bn
- November — N33.6bn
Beyond PSCs, the NNPC also earns revenue from other crude oil sources, including joint venture (JV) operations and sole-risk fields. In the same period, the company remitted N445.4 billion to the frontier exploration fund and N593.87 billion to the federation account.
Revenues retained by some major government agencies, popularly known as ‘Super Agencies’, have raised concerns recently. On October 9, 2025, the World Bank highlighted that funding allocated to Nigerian revenue-generating agencies is significantly higher compared to peers in other African countries.
Earlier reforms include a January 2024 federal government circular mandating an “automatic” 50 percent remittance of total revenue by all self-funded enterprises. In line with this, President Bola Tinubu, on August 13, 2025, directed the Ministry of Finance to review deductions and revenue retention practices by agencies, including the NNPC, FIRS, NCS, NUPRC, and NIMASA.
Finance Minister Wale Edun stated that the review aims to ensure transparency and proper remittance of all revenues.
