Tinubu’s Executive Order unlocks N1.08trn from NNPC to FAAC 

The Nigerian National Petroleum Company Limited (NNPC) reported a 60 percent surge in remittances to the Federation Account in March 2026, providing a significant boost to national coffers. Remittances reached N2.88 trillion during the month, up from N1.80 trillion in February.

This increase follows the implementation of Executive Order No. 9, signed by President Bola Tinubu in February. The order prohibits the Nigerian National Petroleum Company Limited (NNPC) from deducting 30 percent for the Frontier Exploration Fund (FEF) and 30 percent for management fees from profits before remittance.

New mandate maximises government revenue

The executive order mandates that all royalty, tax, and profit oil and gas be remitted directly to the Federation Account. This policy shift aims to maximise government revenue by ensuring funds are recorded before any deductions for cost of collection are made.

Macroeconomic Strategist and Head of Investment Research at Afrinvest Consulting Damilare Asimiyu attributed the increase to the new remittance framework. Speaking to BusinessDay, Asimiyu noted that the enforcement ensures the NNPC no longer holds back significant portions of profit at the source.

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Asimiyu also highlighted the impact of the US-Iran conflict, which has pushed global oil prices higher. Despite dismal crude oil production levels, Nigeria is currently receiving a windfall of at least $20 per barrel due to the geopolitical tension.

“What has actually supported the inflow or the remittance to the Federation account is also more because of the increase in oil price. Don’t forget, February 28th was when the US and Israel attacked Iran, and oil price moved from $72 to average. Since that time, even if you do average oil price, you can’t get less than $95,” Asimiyu said.

Production shortfalls limit revenue potential

While revenue has increased, analysts suggest Nigeria is still performing below its potential. Asimiyu noted that if the country had met its production targets, oil revenue would have significantly surpassed the current expectations of about N39 trillion for the year.

“In fact, the problem many of us analysts are having with the federal government is that, assuming we are producing enough this year, right, instead of us targeting revenue of about N39 trillion, if Nigeria had produced up to the level it was supposed to be producing, on a normal basis, we should have surpassed what we are expecting from oil significantly,” he said.

NNPC profit after tax doubles in March

The NNPC also reported a staggering surge in its bottom line, with profit after tax soaring by more than 100 percent. Profit rose from N136 billion in February to N276 billion in March. Total revenue for the period stood at N2.77 trillion, a slight increase from the N2.68 trillion recorded in February.

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Monthly report data showed crude oil production improved to 1.32 million barrels per day (mbpd) in March, up from 1.27 mbpd in February. However, the value of crude oil sales dropped to 17.27 million barrels (mmbbls), down from 22.09 mmbbls in the previous month.

The company is executing restoration plans to strengthen production resilience and resolve evacuation constraints. Production improvements in March were driven by the early completion of maintenance at the OML 118 Bonga asset, which was delivered 12 days ahead of schedule.

Read also: Nigeria’s crude oil production hits five-year high of 1.71 million bpd, NNPC says

“Production improved compared to the previous month, driven by the early completion of the OML 118 Bonga Turnaround Maintenance, delivered 12 days ahead of schedule. However, the Trans Forcados Pipeline (TFP) outage, resulting from a leak at the Keremor axis, negatively impacted production volumes, leading to curtailments across several assets from 20 February to 25 March, alongside other operational challenges,” the report stated.

Significant progress was recorded on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, including the completion of welding on the spur line to the Gwagwalada Independent Power Plant. Additionally, the NNPC Gas Infrastructure Company (NGIC) announced the completion of the River Niger Crossing for the OB3 Pipeline.

The OB3 Pipeline, designed to transport up to 2 billion standard cubic feet of gas per day, serves as a strategic link between the Eastern and Western gas networks. The company stated that the completion of the crossing “unlocks the full potential of the OB3 Pipeline… significantly strengthening energy availability, enhancing supply reliability, and accelerating national economic development.”