The Nigerian National Petroleum Company (NNPC) Limited received ₦445.4 billion in management fees from production-sharing contract (PSC) profit oil between January and November 2025, according to official federation account data.
Figures from the November 2025 Federation Account Allocation Committee (FAAC) show that the amount represents 30 per cent of the ₦1.48 trillion generated from PSCs during the 11-month period.
The figure marks a 118.3 per cent increase from the ₦204.04 billion earned as PSC management fees in the corresponding period of 2024, when total PSC profit oil stood at ₦680.15 billion, the data showed.
Production-sharing contracts are agreements between the NNPC, acting on behalf of the federal government, and oil companies, setting out how petroleum output is shared. Under the arrangement, “profit oil” refers to production remaining after deducting “cost oil”, which covers operating expenses, and is subsequently shared between the parties and the government.
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From PSC profit oil proceeds, 30 per cent is allocated as a management fee, another 30 per cent to the frontier exploration fund, while the remaining 40 per cent is paid into the federation account. The management fee portion is retained by the NNPC for administering PSC operations.
Despite the year-on-year increase, the ₦445.4 billion earned fell 31.6 per cent below the ₦651.31 billion management fee target for the period, according to the FAAC figures.
Monthly receipts show that the NNPC earned ₦31.7 billion in January, ₦38.3 billion in February, and ₦61.4 billion in March. This was followed by ₦36.5 billion in April, ₦38.7 billion in May, ₦6.8 billion in June, ₦25.3 billion in July, and ₦78.9 billion in August.
Further data showed receipts of ₦82.6 billion in September, ₦11 billion in October, and ₦33.6 billion in November.
Beyond PSCs, the national oil company also earns revenue from joint venture operations and sole-risk oil fields. During the period under review, FAAC data showed that the NNPC remitted ₦445.4 billion to the frontier exploration fund and transferred ₦593.87 billion to the federation account.
Revenue retention by major government agencies, often referred to as “super agencies”, has drawn increased scrutiny. In October 2025, the World Bank said funding allocated to Nigeria’s revenue-generating agencies was significantly higher than that of comparable agencies in other African countries.
Earlier, in January 2024, the federal government directed all self-funded agencies to remit 50 per cent of their total revenue automatically to the treasury. The reform was reinforced on August 13, 2025, when President Bola Tinubu ordered a review of revenue deductions and retention practices across government agencies.
The finance minister and coordinating minister of the economy, Wale Edun, said the review would cover the NNPC, the Federal Inland Revenue Service, the Nigeria Customs Service, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Maritime Administration and Safety Agency.