The Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission have remitted more than 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 recent Federation Account Allocation Committee meetings showed that the remittances followed a Federal Government directive mandating the full transfer of crude oil and gas revenues into the Federation Account.
Executive Order 9 was introduced by President Tinubu to improve transparency, strengthen accountability in the oil and gas sector, and increase government revenue amid growing fiscal pressure.
The President, while announcing the directive earlier this year, said excessive deductions and structural distortions in the petroleum sector had weakened remittances meant for the Federal Government, states and local governments.
“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 development are trapped in layers of charges and retention mechanisms, the country suffers. That must end,” Tinubu said.
According to the FAAC documents, the NNPC remitted a total of $29.28m and N42.64bn from crude oil and gas receipts for March 2026, which were shared in April.
The company stated that it transferred “100 per cent of the total crude oil and gas receipts” into the Federation Account in compliance with the new directive.
The receipts came from several sources, including crude oil exports, domestic crude sales to the Dangote Petroleum Refinery, Production Sharing Contract profits, gas earnings and other miscellaneous revenue streams.
The breakdown showed that crude oil exports generated about $25.7m, while PSC profits contributed $3.52m. On the naira side, crude oil export proceeds stood at N37.67bn, with additional earnings from miscellaneous crude and gas revenue.
For February 2026 receipts shared in March, the NNPC disclosed that it remitted a higher sum of $87.63m and N121.34bn into the Federation Account.
The FAAC records also revealed that the Nigerian Upstream Petroleum Regulatory Commission separately remitted N34.2bn in March 2026 from royalties, gas flare penalties, concession rentals and other oil-related revenue.
The commission explained that the remittance was part of its statutory responsibility to transfer all collected upstream petroleum revenue into the Federation Account.
A breakdown showed that oil and gas royalties generated N18.69bn, while gas flare penalties contributed N10.2bn. Other miscellaneous oil revenue and concession rentals accounted for the balance.
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However, the March inflow represented a major drop compared to February 2026, when the NUPRC generated N124.4bn. The decline was linked mainly to lower royalty collections during the period.
The latest remittances highlight the Federal Government’s renewed efforts to improve revenue accountability and plug leakages in the oil sector.
The move is also expected to increase monthly FAAC allocations to federal, state and local governments at a time when many states are dealing with rising debt burdens, salary obligations and infrastructure funding challenges.
Meanwhile, the World Bank has called for stricter implementation of Executive Order 9, urging the government to end deductions at source and ensure Ministries, Departments and Agencies operate through transparent budgetary allocations.
In its latest Nigeria Development Update report, the World Bank said stronger enforcement of the order would help consolidate gains already made in revenue transparency and improve public finance management across government institutions.
