LAGOS – The Nigerian National Petroleum Company Limited (NNPC Ltd) remitted a record N1.804 trillion (approx. $1.31 billion) to the Federation Account in February 2026, marking a staggering 148% increase from the N726 billion ($529 million) remitted in January.
According to the company’s latest Monthly Report Summary, the surge in fiscal performance follows the implementation of Executive Order 9, signed by President Bola Tinubu in mid-February. The directive overhauled the oil revenue remittance framework, mandating a direct payment model and curbing long-standing deductions previously retained by the state-owned oil firm.
The report highlights a significant strengthening of the Federation’s revenue base, as total revenue for the month rose to N2.68 trillion ($1.95 billion), up from N2.57 trillion ($1.87 billion) in the preceding month. Profit after tax (PAT) for February also showed improvement, reaching N136 billion ($99.1 million).
The Impact of Executive Order 9
The primary catalyst for the nearly N1.1 trillion ($801 million) month-on-month increase is the suspension of specific fees NNPC Ltd formerly deducted “at source.” Under the new framework, the company has ceased the collection of:
- 30% Management Fees on Profit Oil and Profit Gas from Production Sharing Contracts (PSCs).
- 30% Frontier Exploration Fund (FEF) deductions, which are now directed in full to the Federation Account.
By eliminating these retentions, the Federation now receives 100% of PSC profit oil, a sharp departure from the previous structure where nearly two-thirds of potential revenue was diverted toward operational and exploration costs.
While the financial spike was largely driven by structural reforms, operational data remained relatively stable. Crude oil and condensate production averaged 1.51 million barrels per day (mbpd) in February. Although production slightly dipped from January’s levels due to localized evacuation constraints, the “cleanup” of the remittance pipeline ensured that the resulting revenue reached government coffers more efficiently.
Industry analysts suggest the new direct remittance model restores constitutional compliance and provides much-needed liquidity for the federal, state, and local governments.With the Federation Account Allocation Committee (FAAC) expected to distribute these record funds later this month, the February performance marks a pivotal moment in the government’s push for transparency and increased non-debt revenue.
