The Nigerian National Petroleum Company Limited (NNPC) has earned over ₦801.3 billion from Management Fees and the Frontier Exploration Fund within the first nine months of 2025, representing more than half of its annual projection.
The figures, drawn from the company’s September 2025 report to the Federation Accounts Allocation Committee (FAAC), revealed that both streams — the Management Fee and Frontier Exploration Fund — recorded ₦400.667 billion each between January and September.
Both categories represent 30 per cent shares of profit oil and gas from the Production Sharing Contracts (PSC) operated by the NNPC on behalf of the federation.
Despite the huge earnings, the report also exposed a shortfall of over ₦264 billion from the projected target for the nine-month period, highlighting the pressure confronting Nigeria’s oil and gas revenue base amid sluggish crude production.
The breakdown showed that for every ₦100 generated from PSC profits, NNPC retained ₦30 as its management entitlement, another ₦30 was reserved for frontier exploration, while ₦40 went directly to the Federation Account.
In total, NNPC distributed ₦1.335 trillion to FAAC between January and September — about 56.3 per cent of its ₦2.368 trillion annual budget — leaving a deficit of more than ₦440 billion.
The report further revealed that the Federation’s 40 per cent PSC share amounted to ₦710.5 billion within the same period, while overall PSC distribution stood at ₦1.776 trillion.
The Frontier Exploration Fund, which supports oil search in underexplored regions like Chad, Bida, Sokoto, Dahomey, and Benue troughs, continues to generate public interest.
So far, ₦400.6 billion has been mobilised for exploration activities, including seismic surveys and appraisal programmes, as the NNPC seeks to expand Nigeria’s crude reserves.
However, concerns persist over how effectively the funds are being deployed and the transparency surrounding exploration projects in the frontier basins.
Industry analysts say the earnings, though significant, still fall short of expectations given Nigeria’s lingering production challenges.
Average crude oil output in 2025 has hovered around 1.6 million barrels per day, well below the 2.06 million bpd benchmark used for the 2025 national budget.
This production gap, combined with operational inefficiencies and oil theft, continues to undermine fiscal performance despite recent recovery efforts.
With only three months left in the year, NNPC faces the challenge of bridging the wide gap between budgeted and actual revenue inflows.
Observers say whether the corporation can meet its full-year targets will depend on stable oil prices, improved production capacity, and greater efficiency in PSC management.
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