NNPCL Remits N10trn To Federation Account In 8 Months

Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPCL) has transferred a record N10.07 trillion to the Federation Account in the first eight months of 2025.

The figure, disclosed in NNPC’s September 2025 monthly report, represents the company’s statutory payments between January and August 2025.

NNPCL also reported N4.27 trillion in group revenue and N216 billion in profit after tax for the period, according to provisional data in the company’s monthly summary.

The results included adjustments to the cost of sales and income tax.

The surge was supported by higher crude prices, improved production levels, and stronger gas sales.

Average crude oil and condensate production held steady at 1.61 million barrels a day (bpd) in September, according to the report, slightly below August’s 1.64 million bpd.

Production peaked at 1.77 million bpd earlier in the year before moderating amid maintenance at the Nigeria LNG plant and delayed start-ups at Oil Mining Leases (OMLs) 71 and 72.

The state energy firm stated that output has been supported by “industry-wide collaboration and production recovery initiatives,” although challenges persisted in curbing crude theft and vandalism in the Niger Delta.

Natural gas production averaged 6.28 billion standard cubic feet per day (scf/d) in September, down from about 6.95 billion in August, reflecting temporary maintenance slowdowns. NNPC said progress on the Ajaokuta–Kaduna–Kano (AKK) and Obiafu–Obrikom–Oben (OB3) pipelines remains on track, with the AKK now 88 per cent complete.

Brent crude prices averaged around $65 a barrel during the third quarter, while Nigeria’s output recovery helped offset weaker refining margins and high domestic distribution costs.

The company, now operating under the Companies and Allied Matters Act, has emphasised a commercial turnaround since its incorporation in 2021, reducing inter-agency leakages and accelerating payment timelines to the federation.

According to the report, pipeline uptime across upstream operations averaged 96 per cent in September, reflecting fewer disruptions from sabotage or leaks. Security collaborations with the Nigerian military and local surveillance groups have significantly reduced downtime in the Niger Delta.

Also, NNPC Retail Ltd sustained 77 per cent petrol availability across its filling stations nationwide, signalling steady supply despite market disruptions following subsidy reforms. The company has also expanded the NNPC-branded network to more rural locations to improve fuel accessibility.

If current remittance trends hold, analysts said NNPC’s total payments could exceed N15trillion by year-end, providing a crucial cushion for government finances and external reserves.