The Nigerian National Petroleum Company Limited received ₦318.05bn between January and August 2025 for frontier oil exploration, sparking criticism from experts and prompting President Bola Tinubu to order a review of revenue deductions.
The Nigerian National Petroleum Company Limited (NNPCL) has received ₦318.05bn between January and August 2025 for frontier oil exploration, even as its failure to remit dividends deepened revenue shortfalls for the Federation Account.
Documents from the September 2025 Federation Account Allocation Committee meeting, obtained by The PUNCH, showed the funds were drawn from 30 per cent of Production Sharing Contract profits mandated under the Petroleum Industry Act 2021. Monthly allocations ranged from as low as ₦6.83bn in June to as high as ₦78.94bn in August.
Despite the deductions, PSC profits of ₦1.06tn fell short of the ₦1.58tn budget, leaving the Federation Account with only ₦424.07bn by August—₦207.5bn below projections. NNPCL’s 30 per cent management fee also mirrored the frontier allocation, pushing its total receipts to ₦636.1bn in eight months.
Industry stakeholders have raised concerns. “The money allocation is unrealistic, too high. It is not well used now,” said oil analyst Ademola Adigun, who recommended cutting the frontier share to 10 per cent.
Energy law expert Professor Dayo Ayoade urged caution, warning: “It took us 19 years of reform to agree on the PIA… The funding structure is not really sustainable.”
President Tinubu has ordered a review of deductions by major revenue agencies, including NNPCL, with the Economic Management Team tasked to submit recommendations to the Federal Executive Council.