The Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission remitted over N322bn and $116.9m into the Federation Account within two months following the implementation of Executive Order 9 signed in February 2026, documents presented at the Federation Account Allocation Committee meetings have shown.
The documents, obtained from presentations made by both agencies at the March and April FAAC meetings, indicated that the remittances followed the Federal Government’s directive mandating the full transfer of crude oil and gas revenues into the Federation Account.
The document for January 2026 remittance was not uploaded by the committee.
Executive Order 9, signed by President Bola Tinubu in February 2026, was introduced to strengthen transparency, improve revenue accountability, and boost inflows into the Federation Account at a time the government is grappling with fiscal pressures and rising expenditure demands.
According to the directive, the President invoked Section 5 of the Constitution of the Federal Republic of Nigeria (as amended), anchored on Section 44(3), which vests ownership and control of all minerals, mineral oils, and natural gas in the Government of the Federation.
Tinubu said excessive deductions, overlapping funds, and structural distortions in the oil and gas sector had weakened remittances to the Federation Account and warned that the practice must end to protect national revenue.
“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account. When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end,” he said on his verified X handle.
Findings from the FAAC documents showed that the NNPC remitted a total of $29.28m and N42.64bn for March 2026 crude oil and gas receipts, which were shared in April 2026.
The national oil company stated in its presentation that “100 per cent of the total crude oil and gas receipts of $29,278,415.96 and N2,066,841,328.73 were remitted to the Federation in compliance with Executive Order 9 of February 2026.”
The document showed that the receipts came from multiple revenue streams, including Production Sharing Contract profits, crude oil exports, domestic crude sales to the Dangote Petroleum Refinery, gas receipts, and miscellaneous crude and gas earnings.
A breakdown of the March remittance indicated that crude oil export earnings accounted for $25.7m, while PSC profits contributed $3.52m. On the naira side, crude oil export proceeds stood at N37.67bn, while miscellaneous crude revenue amounted to N42.64bn. Gas revenue contributed N34.47m.
The document further showed that PSC profit inflows were split between the Federation Sub-Account and the Federation Account in line with the statutory sharing formula.
According to the presentation, the Federation Sub-Account received 60 per cent of PSC profits, amounting to $11.71m and N826.74m, while the Federation Account received 40 per cent valued at $17.57m and N1.24bn.
Similarly, the NNPC disclosed that for February 2026 receipts shared in March 2026, it remitted 100 per cent of crude oil and gas earnings totalling $87.63m and N121.34bn to the Federation Account.
The document stated, “Federation Accounts: 100 per cent of the total crude oil and gas receipts of $87,629,089.84 and N1,957,563,915.65 were remitted to the Federation.” The February figures represent significantly higher inflows compared to March, reflecting stronger crude oil and gas revenue performance during the period.
The figures equal $87.63m, and N121.34bn remitted for February 2026 receipts shared in March, as well as $29.28m and N42.64bn remitted for March 2026 receipts shared in April.
The FAAC documents also showed that the NUPRC separately remitted N34.2bn in March 2026 as revenue collections from royalties, gas flare penalties, concession rentals, and miscellaneous oil revenue.
According to the commission’s presentation, the remittance was made in compliance with its statutory obligation to transfer all collectable upstream petroleum revenues into the Federation Account.
The document read, “This report is a summary of royalties (oil and gas), gas flared penalty, rents, and miscellaneous oil revenue collected by the Nigerian Upstream Petroleum Regulatory Commission and remitted to the Federation Account as statutorily mandated.”
A breakdown of the NUPRC collections showed that oil and gas royalties generated N18.69bn in March 2026, while gas flare penalties contributed N10.2bn. Miscellaneous oil revenue, which includes licences and permits, stood at N4.95bn, while concession rentals contributed N364.06m.
However, the March remittance represented a sharp decline when compared to the N124.4bn collected in February 2026. The documents attributed the decline mainly to lower royalty collections, which dropped from N104.31bn in February to N18.69bn in March, representing a decrease of N85.62bn.
Gas flare penalties also declined by N3.96bn during the period under review. The breakdown indicated that the commission generated N124.4bn in February 2026 and N34.2bn in March 2026.
The latest remittance figures underscore the Federal Government’s renewed push to improve oil revenue accountability amid concerns over leakages, under-remittances, and dwindling federation earnings.
The implementation of Executive Order 9 comes as the Federal Government intensifies efforts to stabilise public finances, improve crude oil production, and strengthen oversight across the petroleum value chain.
The development is also expected to boost monthly FAAC allocations to the three tiers of government at a time when many states are battling rising debt obligations, wage pressures, and infrastructure funding gaps.
Recall that the World Bank called for tighter and more explicit enforcement of Executive Order 9, urging the Federal Government to fully implement the directive by ending revenue deductions at source and migrating Ministries, Departments, and Agencies to budgetary funding.
In its latest Nigeria Development Update report, analysed by our correspondent on Thursday and titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” the bank said that while the order has already triggered notable improvements in revenue transparency, “further consolidation of recent gains” would depend on how rigorously its provisions are enforced across all government institutions.
According to the report, “Further consolidation of recent gains of Executive Order 9 will require rationalizing remaining cost-of-collection arrangements and transitioning MDA financing to transparent budget appropriations.”
SOURCE: PUNCH NEWS PAPER
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