The Nigerian Federation Account received 100 percent of profit oil from production sharing contracts (PSCs) in February 2026, reflecting the implementation of President Bola Tinubu’s Executive Order 9, which requires all government oil revenues to be remitted directly to the federation account.
According to figures from the Nigerian National Petroleum Company Limited presented to the Federation Account Allocation Committee (FAAC), NNPC remitted ₦121.34 billion in PSC profit oil in February, a significant increase from the ₦16.07 billion recorded in January. The year-to-date PSC remittance now stands at ₦137.41 billion. Prior to the order, the federation had received only 40 percent of PSC profit oil, with NNPC retaining portions under the Petroleum Industry Act.
Executive Order 9, signed on February 18, ended NNPC’s discretion to deduct oil and gas revenues, ensuring that royalty oil, tax oil, profit oil, profit gas, and other government entitlements are fully paid into the federation account.
Despite the February surge, overall revenue remains below budget projections. The first two months of the year had a budgeted PSC revenue of ₦394.73 billion, leaving a shortfall of about ₦257.32 billion. No interim dividend from NNPC was received in January and February, despite a projected ₦542.37 billion, resulting in a total oil and gas revenue deficit of roughly ₦799.69 billion for the period.
At its March 2026 meeting in Abuja, FAAC approved a total distributable revenue of ₦1.894 trillion for February. Of this, the Federal Government received ₦675.088 billion, state governments shared ₦651.525 billion, and local government councils received ₦456.467 billion. Oil-producing states were allocated ₦110.949 billion as derivation revenue.
The statutory revenue component of ₦1.274 trillion was distributed with the Federal Government receiving ₦613.174 billion, states ₦311.010 billion, and local councils ₦239.776 billion. From the ₦619.119 billion VAT revenue, the Federal Government received ₦61.912 billion, states ₦340.515 billion, and local councils ₦216.692 billion.
FAAC noted that oil and gas royalty and excise duty revenues rose during the month, but other major sources—including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties, and VAT—declined. Import duty and the Common External Tariff posted modest increases.
The February distribution highlights both the impact of Tinubu’s EO9 in ensuring full PSC remittance to the federation account and the ongoing challenges in meeting projected revenue targets, underscoring the need for continued reforms in Nigeria’s fiscal and oil revenue framework.
FAAC continues to meet monthly to allocate revenues among the Federal Government, states, and local councils according to Nigeria’s statutory revenue-sharing formula.
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