Business Briefings
NNPC, NUPRC Remit N322bn, $116.9m Following Tinubu’s Executive Order
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 by President Bola Tinubu in February 2026.
Documents presented at the Federation Account Allocation Committee meetings showed that the remittances followed the Federal Government’s directive mandating the full transfer of crude oil and gas revenues into the Federation Account.
The Executive Order was introduced to strengthen transparency, improve revenue accountability, and increase inflows into the Federation Account amid mounting fiscal pressures and rising government expenditure.
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According to the directive, the President invoked Section 5 of the Constitution of the Federal Republic of Nigeria, 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 stated, “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.”
Documents from the FAAC presentations showed that the NNPC remitted a total of $29.28m and N42.64bn for March 2026 crude oil and gas receipts shared in April 2026.
The 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 receipts were generated from 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 showed that crude oil export earnings contributed $25.7m, while PSC profits accounted for $3.52m. On the naira component, 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 valued at $11.71m and N826.74m, while the Federation Account received 40 per cent amounting to $17.57m and N1.24bn.
The total transfer for the month stood at $29.28m and N42.64bn.
For February 2026 receipts shared in March 2026, the NNPC disclosed that it remitted 100 per cent of crude oil and gas earnings totalling $87.63m and N121.34bn to the Federation Account.
The company 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 represented significantly higher inflows compared to March, reflecting stronger crude oil and gas revenue performance during the period.
Combined figures from both months showed that the NNPC remitted a total of $116.9m and over N163.9bn into the Federation Account following the implementation of the Executive Order.
The FAAC documents also showed that the NUPRC separately remitted N34.2bn in March 2026 from royalties, gas flare penalties, concession rentals and miscellaneous oil revenue collections.
According to the commission’s presentation, the remittance complied with its statutory obligation to transfer all collectible 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 commission’s collections showed that oil and gas royalties generated N18.69bn in March 2026, while gas flare penalties contributed N10.2bn. Miscellaneous oil revenue stood at N4.95bn, while concession rentals contributed N364.06m.
However, the March remittance represented a sharp decline 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 latest remittance figures highlight the Federal Government’s renewed push to improve oil revenue accountability amid concerns over leakages, under-remittances and declining federation earnings.
The implementation of Executive Order 9 comes as the government intensifies efforts to stabilise public finances, improve crude oil production and strengthen oversight across the petroleum value chain.
The development is expected to boost monthly FAAC allocations to the three tiers of government at a time many states are contending with rising debt obligations, wage pressures and infrastructure funding gaps.
Meanwhile, the World Bank has called for stricter enforcement of Executive Order 9, urging the Federal Government to eliminate revenue deductions at source and migrate Ministries, Departments and Agencies to budgetary funding.
In its Nigeria Development Update report titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” the bank stated, “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.”
