The Nigerian National Petroleum Company Limited (NNPC) generated N478.2 billion from its 30 per cent Frontier Exploration Fund (FEF) and management fees between January and July 2025, according to a presentation the company made to the Federation Accounts Allocation Committee (FAAC) on August 20.
The document showed that NNPC earned N239.1 billion from the frontier fund and another N239.1 billion as management fees during the seven-month period. Both inflows are derived from Production Sharing Contracts (PSCs) under provisions of the Petroleum Industry Act (PIA).
Section 9(4) of the PIA mandates that 30 per cent of NNPC’s profit oil and profit gas under PSCs be reserved for the frontier fund, while Section 64(c) empowers the company to deduct 30 per cent as management fees before remitting proceeds to the federation.
A breakdown of the inflows showed N31.77 billion accrued in January, N38.3 billion in February, and N61.49 billion in March. April recorded N36.58 billion, May N38.79 billion, June N6.83 billion, while July brought in N25.3 billion.
In addition, the presentation revealed that total PSC distributions to the federation during the same period stood at about N318.8 billion.
The N478.2 billion revenue, though below projections, highlights NNPC’s growing role in financing upstream exploration, especially in frontier basins such as Chad, Benue Trough, Gongola, and Anambra. Exploration in these areas is expected to support the federal government’s goal of boosting daily crude production from about 1.5 million barrels to 3 million barrels in the medium term.
The document also pointed to shortfalls against budget targets. From January to July, frontier fund and management fee collections were each N173.3 billion below expectations. Similarly, interim dividend remittances were projected at N552.6 billion but stood at N318.82 billion, leaving a deficit of N233.8 billion.
Beyond the figures, NNPC has advanced frontier exploration projects. In Nasarawa State, it spudded the Ebenyi-A well in March 2023, marking the first oil drilling campaign in the Middle Benue Trough. In Bauchi, the $3 billion Kolmani Integrated Development Project, launched in November 2022, is designed to deliver 50,000 barrels per day at full operation.
The N239.1 billion management fee retained within the period also provides NNPC with a steady, independent revenue stream for administering joint ventures and production contracts—marking a departure from the old model where the corporation relied heavily on federal budgetary allocations.
