Revenue inflows into Nigeria’s Federation Account have recorded a significant boost as the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission jointly remitted over N322bn and $116.9m within two months of the implementation of Executive Order 9 signed in February 2026.

The figures were contained in documents presented at recent Federation Account Allocation Committee (FAAC) meetings, showing increased compliance following a directive aimed at tightening transparency and ensuring full remittance of oil and gas revenues into the Federation Account.

The policy, introduced by the Bola Tinubu, was designed to address long-standing concerns over deductions, revenue leakages, and retention practices within the petroleum sector that had reduced inflows available for federal, state, and local governments.

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Executive Order 9 was signed in February 2026 to enforce stricter compliance with constitutional provisions governing natural resource ownership and revenue remittance.

The order is anchored on Sections 5 and 44(3) of the Nigerian Constitution, which vest control of mineral resources in the Federal Government.

According to the administration, the move was necessary to eliminate “overlapping funds and structural distortions” in the oil and gas sector that had historically weakened government earnings.

Officials say the reform is part of broader fiscal stabilisation efforts as Nigeria faces rising expenditure pressures and widening budget deficits.

NNPC Remits Over $116m and N163bn in Two Months

FAAC documents show that the NNPC alone remitted a combined $116.9m and about N163.98bn across February and March 2026 oil and gas receipts.

For February 2026 (shared in March), the company transferred $87.63m and N121.34bn, reflecting strong crude oil and gas revenue performance during the period.

For March 2026 (shared in April), it further remitted $29.28m and N42.64bn, bringing the cumulative total to over N322bn and $116.9m.

The company reported that the funds represented 100% of crude oil and gas earnings from key revenue streams, including:

• Production Sharing Contract (PSC) profits
• Crude oil exports
• Domestic crude sales to refineries
• Gas revenue
• Miscellaneous oil and gas receipts

A breakdown of the March inflows showed crude oil exports as the largest contributor, followed by PSC earnings and domestic crude transactions.

NUPRC Also Records N34.2bn Remittance

Separately, the Nigerian Upstream Petroleum Regulatory Commission remitted N34.2bn in March 2026, covering royalties, gas flare penalties, concession rentals, and other upstream revenues.

The commission stated that the remittance was made in line with statutory requirements mandating full transfer of upstream petroleum revenues to the Federation Account.

Breakdowns showed:

• Oil and gas royalties: N18.69bn
• Gas flare penalties: N10.2bn
• Miscellaneous revenue: N4.95bn
• Concession rentals: N364.06m

However, the March figure marked a sharp decline compared to N124.4bn collected in February 2026, driven largely by lower royalty payments.

The implementation of Executive Order 9 is seen as part of wider fiscal reforms aimed at boosting allocations to the three tiers of government amid economic pressures.

By mandating full remittance of oil revenues, the government expects improved liquidity in the Federation Account, which funds federal, state, and local government spending.

Officials say the reform will help address structural inefficiencies in revenue retention practices and improve transparency in the petroleum sector.

The order also requires Ministries, Departments, and Agencies to transition toward transparent budgetary funding rather than retaining revenues at source.

The World Bank has previously urged the Nigerian government to fully enforce the policy, warning that partial implementation could limit its impact on fiscal sustainability.

In its assessment, the bank noted that stronger enforcement could significantly improve revenue mobilisation if backed by consistent institutional reforms.

Economic analysts, however, caution that while the policy has improved transparency, Nigeria’s broader fiscal health will still depend on production stability, global oil prices, and exchange rate conditions.

With oil revenues remaining central to Nigeria’s fiscal structure, the early results of Executive Order 9 suggest a stronger push toward centralised revenue management.

However, sustained gains will depend on continued compliance by key agencies and stable oil production levels amid global market volatility.

For now, the increased remittances mark one of the most notable early fiscal outcomes of the Tinubu administration’s petroleum sector reforms.