The Federation Account has begun receiving 100 percent of profit oil from Production Sharing Contracts (PSCs) following the implementation of Executive Order 9 signed by Bola Ahmed Tinubu.
Data from the February 2026 oil and gas revenue distribution presented by the Federation Account Allocation Committee (FAAC) and obtained by TheCable showed that the Nigerian National Petroleum Company Limited (NNPC Ltd.) remitted N121.34 billion to the federation account as profit oil from PSCs in February.
Previously, the federation received only 40 percent of PSC profit oil, with the remainder retained under existing revenue arrangements.
The February remittance represents a significant rise from the N16.07 billion recorded in January, bringing total PSC profit oil paid into the federation account for the first two months of 2026 to N137.41 billion.
The increase reflects the enforcement of Executive Order 9, which mandates that government oil revenues be paid directly into the federation account.
However, despite the improvement in February inflows, the overall remittances remain far below government projections.
According to the FAAC data, about N394.73 billion in PSC revenue had been projected for January and February combined. Actual remittances of N137.41 billion left a shortfall of approximately N257.32 billion.
The report also indicated that the federation account received no interim dividend payments from the Nigerian National Petroleum Company Limited during the two-month period.
While N542.37 billion had been projected as dividend payments for January and February, no remittance was recorded.
As a result, total oil and gas revenue fell significantly below expectations.
The federal budget projected N937.10 billion in oil and gas revenue for the period, but actual remittances stood at N137.41 billion, leaving a variance of about N799.69 billion.
President Bola Ahmed Tinubu signed Executive Order 9 on February 18, 2026, to restructure the oil revenue remittance framework.
Under the new policy, revenues from royalty oil, tax oil, profit oil, profit gas, and other government entitlements must be paid directly into the federation account.
Before the directive, the Nigerian National Petroleum Company Limited retained about 30 percent of PSC profit oil under provisions of the Petroleum Industry Act (PIA), in addition to another 30 percent as a management fee.
With the implementation of Executive Order 9, NNPC’s authority to deduct such revenues has effectively been terminated, marking a major shift in Nigeria’s oil revenue management framework
