The Nigerian National Petroleum Company Limited (NNPC Ltd.) has remitted the entire proceeds from Production Sharing Contract (PSC) profits to the Federation Account for February 2026, signalling the implementation of Executive Order 09 recently signed by Bola Ahmed Tinubu.
Documents presented at the March meeting of the Federation Account Allocation Committee (FAAC) showed that the federal government received 100 per cent of PSC profits for the month, amounting to N121.343 billion. The figure raised total remittances for January and February 2026 to N137.409 billion.
Data from the NNPC presentation titled “February 2026 NNPC Oil & Gas Revenue and Distribution to FAAC” indicated that January remittances stood at N16.066 billion when only 40 per cent of PSC profits were transferred to the Federation Account. The difference between January and February remittances was approximately N105.33 billion.
The change followed the enforcement of Executive Order 09, issued by Tinubu in February 2026, which mandates that all oil and gas revenues—including royalties, taxes and profit oil or gas—be remitted directly into the Federation Account.
A note accompanying the FAAC presentation explained that January’s distribution followed the formula stipulated in the Petroleum Industry Act (PIA), which prescribes a 30:30:40 sharing structure. However, from February onward, remittances have been aligned with the new presidential directive.
Despite the policy shift, actual revenue receipts remain significantly below projections. The 2026 budget estimates PSC profits at N2.368 trillion annually, translating to a monthly target of N197.367 billion and a year-to-date projection of N394.733 billion for the first two months.
However, an analysis showed that actual receipts of N137.409 billion created a shortfall of N257.324 billion, representing a 65.2 per cent variance below target.
The FAAC presentation also highlighted the absence of interim dividend payments from NNPC during the period. The 2026 budget projects N3.254 trillion in interim dividends from the national oil company, equivalent to N271.184 billion monthly and N542.368 billion for the first two months of the year.
However, no interim dividend was recorded for January or February, leaving the year-to-date figure at zero and creating a negative variance of N542.368 billion against budget expectations.
The revenue gaps underscore persistent challenges in Nigeria’s oil sector, particularly production constraints that have kept output below the country’s quota under the Organization of the Petroleum Exporting Countries (OPEC), currently set at 1.5 million barrels per day.
Presidency Counters Obi on Petrol Price Claims
Meanwhile, the Presidency has dismissed claims by former Peter Obi that rising petrol prices in Nigeria are largely due to the absence of a strategic petroleum reserve.
Responding to the remarks, Special Assistant to the President on Social Media, Olusegun Dada, said petrol prices in Nigeria are now determined primarily by market forces following the deregulation of the downstream petroleum sector by the Tinubu administration.
In a statement posted on his X (formerly Twitter) account, Dada explained that in a deregulated market, fuel prices are influenced by global crude oil prices, exchange rates, shipping costs and supply risks.
He added that the removal of fuel subsidy has allowed market realities to determine pump prices, meaning developments in the international oil market now have a direct impact on domestic fuel costs.
Dada also rejected the suggestion that establishing a strategic petroleum reserve would automatically stabilise retail fuel prices, noting that such reserves in many countries are maintained mainly for emergencies such as wars, embargoes or major supply disruptions rather than for routine price management.
Uzodimma: Tinubu Shielding Nigeria from Global Fuel Crisis
In a related development, Hope Uzodimma, governor of Imo State, said Tinubu’s economic and energy reforms have helped shield Nigeria from the impact of the global fuel crisis triggered by geopolitical tensions in the Middle East.
Speaking when members of the City Boy Movement visited him at the Government House in Owerri, Uzodimma said the administration’s policies had prevented fuel scarcity and moderated domestic price pressures despite the ongoing regional conflict.
He also noted that the naira had remained relatively stable at about N1,240 to the dollar during the crisis, while several other African currencies experienced greater volatility.