The Nigerian National Petroleum Company (NNPC) Limited has disclosed statutory payments totaling N10.07 trillion between January and August 2025, according to its September Monthly Report Summary released on Tuesday. While the figure underscores the company’s financial scale, details on the recipients or purposes of these payments remain unspecified.
The disclosure comes amid scrutiny over NNPC’s remittances to the federation account. A report by Abuja-based policy think-tank Agora Policy cited the Federation Account Allocation Committee (FAAC) data, indicating that the company has only remitted N534 billion as the federation’s share of production sharing contract (PSC) profit oil from January to September 2025.
NNPC distributes PSC profit oil across three key categories: the management fee (30 percent), frontier exploration funds (30 percent), and the federation share (40 percent). Agora Policy noted that no interim dividends have been paid during the nine-month period—a sum that should have amounted to about N2.44 trillion—despite the company recording approximately N1 trillion in profit oil in August.
Efforts to obtain clarifications from NNPC spokesperson Andy Odeh on the statutory payments were pending at the time of publication.
Profit After Tax and Revenue Trends
NNPC reported a profit after tax (PAT) of N216 billion for September, a significant decline of 149.54 percent from N539 billion in August. Revenue for the month stood at N4.26 trillion, down 8.39 percent from N4.65 trillion the previous month.
“All production, sales, and financial figures are provisional and subject to reconciliation with relevant stakeholders,” the company stated, noting that the figures reflect aggregate group-wide revenues, including intercompany transactions and adjustments for cost of sales and income tax.
Production Performance and Ongoing Projects
Crude oil and condensate production averaged 1.61 million barrels per day (bpd) in September, down from 1.65 million bpd in August. Natural gas output also declined to 6.28 million standard cubic feet daily (mscfd) from 6.94 mscfd. The company attributed the temporary decline to planned maintenance activities, including those at Nigeria LNG Limited, phased recovery of previously shut-in assets, and delays in operations at Oil Mining Leases (OMLs) 71 and 72.
NNPC highlighted continued collaboration with industry partners to drive production recovery and maintain operational efficiency. The company is also advancing key gas infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) gas pipeline and the Obiafu-Obrikom-Oben (OB3) gas pipeline.
Regarding the OB3 pipeline, the company confirmed that a 113km section crossing the Niger River has been commissioned, delivering approximately 300 mmscfd of gas from multiple producers: AHL contributing 250 mmscfd, with Chorus and Xenergi supplying an additional 50 mmscfd. NNPC said a revised execution strategy is being implemented to ensure timely completion of remaining OB3 segments.
Outlook
The NNPC report reflects a complex mix of financial strength, production challenges, and strategic infrastructure development. While statutory payments demonstrate the scale of the company’s fiscal operations, the limited remittance to the federation account and declining monthly profits highlight the ongoing pressures on Nigeria’s national oil firm as it balances revenue generation, operational maintenance, and critical pipeline projects.