NNPC, NUPRC boost federation account with N322bn remittance

The Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission remitted more than N322 billion and $116.9 million into the Federation Account within two months following the implementation of Executive Order 9 signed by President Bola Ahmed Tinubu in February 2026.

Documents presented at the Federation Account Allocation Committee (FAAC) meetings for March and April 2026 showed that the remittances followed the Federal Government’s directive requiring the full transfer of crude oil and gas revenues into the Federation Account.

Executive Order 9 was introduced to strengthen transparency, improve accountability in the oil and gas sector, and increase government revenue inflows amid growing fiscal pressures.

According to the order, the President invoked constitutional provisions granting ownership and control of mineral resources to the Federal Government.

Tinubu said the directive became necessary because excessive deductions and overlapping charges within the petroleum sector had weakened remittances to the Federation Account.

“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account,” the President stated.

FAAC documents showed that the NNPC remitted $29.28 million and N42.64 billion for March 2026 crude oil and gas receipts shared in April.

The national oil company stated that “100 per cent of the total crude oil and gas receipts” were transferred to the Federation in compliance with Executive Order 9.

The revenue came from crude oil exports, Production Sharing Contract (PSC) profits, domestic crude sales to the Dangote Petroleum Refinery, gas receipts, and other miscellaneous earnings.

According to the breakdown, crude oil export earnings accounted for $25.7 million, while PSC profits contributed $3.52 million.

On the naira side, crude oil export proceeds stood at N37.67 billion, while gas revenue contributed N34.47 million.

The documents further showed that the Federation Sub-Account received 60 per cent of PSC profits, while the remaining 40 per cent went directly into the Federation Account.

Similarly, NNPC disclosed that for February 2026 receipts shared in March, it remitted $87.63 million and N121.34 billion into the Federation Account.

The February remittance reflected significantly higher inflows compared to March due to stronger crude oil and gas revenue performance during the period.

Separately, the NUPRC reported remitting N34.2 billion in March 2026 from royalties, gas flare penalties, concession rentals and other oil-related revenues.

The commission said the transfer was in line with its statutory responsibility to remit all collectible upstream petroleum revenues into the Federation Account.

A breakdown of the NUPRC figures showed that oil and gas royalties generated N18.69 billion, while gas flare penalties contributed N10.2 billion.

Miscellaneous oil revenue accounted for N4.95 billion, while concession rentals stood at N364.06 million.

However, the March remittance represented a major decline from the N124.4 billion collected in February 2026, mainly due to lower royalty collections.

The latest remittances reflect the Federal Government’s intensified efforts to improve transparency, block leakages and strengthen revenue accountability in the oil and gas sector.

The implementation of Executive Order 9 is also expected to boost monthly FAAC allocations to federal, state and local governments amid rising debt obligations and increasing infrastructure demands.

Meanwhile, the World Bank has urged the Federal Government to fully enforce the executive order by eliminating revenue deductions at source and migrating Ministries, Departments and Agencies to transparent budgetary funding.

In its latest Nigeria Development Update report, the bank said sustaining recent improvements in revenue transparency would depend on stricter enforcement of the directive across government institutions.