Despite failing to remit FAAC dividend, NNPC reports N10trn statutory payments in eight months

The Nigerian National Petroleum Company (NNPC) Limited says it made statutory payments of N10.07 trillion between January and August.

The payment was disclosed in NNPC’s ‘Monthly Report Summary’ for September 2025, published on Tuesday.

However, the national oil firm did not state what the payment was for or which organisation or regulator received it.

A report by Agora Policy, the Abuja-based policy think-tank, indicated that the NNPC is underperforming in its obligation to remit revenue to the federation account.

Citing the Federation Account Allocation Committee (FAAC) report for September, the think-tank said the NNPC has only remitted N534 billion as the federation’s share of production sharing contract (PSC) profit oil between January and September 2025.

The oil company distributes PSC profits oil across three major categories: the NNPC management fee (30 percent), frontier exploration funds (30 percent), and the federation share (40 percent).

“The NNPC has not paid any interim dividend so far, which in 9 months should amount N2.44 trillion,” Agora Policy said.

The oil entity had failed to pay any interim dividend in August, despite recording about N1 trillion in profit oil.

Although Andy Odeh, NNPC’s spokesperson, promised to respond to TheCable’s enquiry on statutory payments, he did not do so at the time of filing this report.

‘NNPC REMITTED PROFIT AFTER TAX OF N216 BILLION’

Meanwhile, the national oil firm also reported a profit after tax (PAT) of N216 billion for September.

The company said the figure decreased by 149.54 percent from N539 billion recorded in August.

The company said a revenue of N4.26 trillion was recorded in the reviewed month — down by 8.39 percent from N4.65 trillion in August.

“All production, sales and financial figures are provisional and subject to reconciliation with relevant stakeholders,” the NNPC said.

“Reflects aggregate of groupwide revenues including intercompany transactions, [and] includes adjustments to cost of sales and income tax.”

DRILLING PERFORMANCE AND ONGOING PROJECTS

According to the company, crude oil and condensate production averaged 1.61 million barrels per day (bpd) in September, from 1.65 million bpd in August, while natural gas output was 6.28 million standard cubic feet daily (mscfd), from 6.94 million scfd.

The NNPC said production levels during the period were “temporarily moderated” due to planned maintenance activities, including those at the Nigeria LNG Limited.

The company also blamed the phased recovery of “previously shut-in assets and delays in the commencement of operations at oil mining lease (OMLs) 71 and 72″.

Commenting on its “industry collaboration”, the company said it is sustaining industry-wide partnerships and driving production recovery initiatives.

In addition, the NNPC said sustained focus is being directed towards the completion of mainline works on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, with substantial progress being recorded on the Obiafu-Obrikom-Oben (OB3) gas pipeline project.

On the OB3 river Niger crossing, the company said the implementation of a revised execution strategy is underway to ensure delivery within target timelines.

The NNPC added that the “113km portion of OB3 gas pipeline has been commissioned and flowing circa 300mmscf/d of gas from the following gas producers: AHL – 250mmscf/d, platform, Chorus & Xenergi – 50mmscf/d”. (The Cable)