Oil Revenue Remittances Rise After Tinubu’s Executive Order 9
Documents presented at Federation Account Allocation Committee meetings have revealed that the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission remitted over N322bn and $116.9m into the Federation Account within just two months of the implementation of Executive Order 9, signed by President Bola Ahmed Tinubu in February 2026.
The FAAC documents, drawn from presentations made by both agencies at the March and April 2026 meetings, indicate the remittances followed a federal directive mandating the full transfer of crude oil and gas revenues into the Federation Account. Documents covering January 2026 remittances were not uploaded by the committee.
Tinubu anchored the executive order on Section 5 of the Constitution, read alongside Section 44(3), which vests ownership and control of all minerals, mineral oils, and natural gas in the Federal Government.
“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,” Tinubu said via his verified X handle.
According to the FAAC documents, NNPC remitted 100 per cent of crude oil and gas receipts totalling $87.63m and N121.34bn for February 2026, shared at the March meeting. For March 2026 receipts shared in April, the company remitted $29.28m and N42.64bn. Revenue streams included Production Sharing Contract profits, crude oil exports, domestic crude sales to Dangote Petroleum Refinery, gas receipts, and miscellaneous earnings.
The NNPC presentation stated 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.”
PSC profit distributions followed the statutory sharing formula, with the Federation Sub-Account receiving 60 per cent valued at $11.71m and N826.74m, while the Federation Account received 40 per cent at $17.57m and N1.24bn.
Separately, the NUPRC remitted N34.2bn in March 2026, comprising oil and gas royalties of N18.69bn, gas flare penalties of N10.2bn, miscellaneous oil revenue of N4.95bn, and concession rentals of N364.06m. However, the March figure represented a sharp decline from the N124.4bn collected in February 2026, driven mainly by a drop in royalty collections from N104.31bn to N18.69bn, a decrease of N85.62bn.
The World Bank, in its latest Nigeria Development Update titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” acknowledged improvements in revenue transparency since the order took effect but urged tighter enforcement. 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.”
The development is expected to boost monthly FAAC distributions to all three tiers of government at a time when many states are contending with rising debt obligations, wage pressures, and infrastructure funding gaps.