The Nigerian National Petroleum Company (NNPC) Limited has remitted 100% of profit oil from production sharing contracts (PSCs) to the federation account in February 2026, marking a significant shift in oil revenue management.
This move is in line with President Bola Tinubu’s Executive Order 9, which requires government oil revenues to be paid directly into the federation account.
The NNPC remitted N121.34 billion to the Federation Account Allocation Committee (FAAC) as profit from PSCs in February, a sharp increase from N16.07 billion in January.
Despite this increase, overall remittances remained below projections, with a shortfall of N257.32 billion against a budget of N394.73 billion for the first two months of the year.
The implementation of EO9 has terminated NNPC’s powers to deduct oil and gas revenues, ensuring that royalty oil, tax oil, profit oil, profit gas, and other government entitlements are paid directly into the federation account.
This move aims to curb wasteful spending, eliminate duplicative structures, and redirect resources for the benefit of Nigerians.
