FAAC receives 100% PSC profit oil as Tinubu’s executive order alters remittance system

THE federation account received the full value of profit oil generated from production sharing contracts (PSCs) in February 2026 after the Nigerian National Petroleum Company Limited (NNPCL) began implementing a new presidential directive on oil revenue remittances.

Details contained in the February oil and gas revenue distribution report presented to the Federation Account Allocation Committee (FAAC) show that the entire PSC profit oil was transferred to the federation pool. Previously, the federation account received only 40 percent of the proceeds.

The development reflects the implementation of Executive Order 9 issued by Bola Ahmed Tinubu, which mandates that government earnings from oil production be paid directly into the federation account.

According to the FAAC figures, the national oil company remitted N121.34 billion from PSC profit oil in February 2026. This represents a significant increase compared with the N16.07 billion paid in January, bringing the cumulative remittance for the first two months of the year to N137.41 billion.

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Even with the stronger inflow in February, the overall performance of PSC revenue remains below projections. The FAAC data indicates that N394.73 billion had been budgeted as PSC revenue for January and February combined. Actual receipts therefore fell short of expectations by about N257.32 billion.

The report also revealed that the federation account did not receive any interim dividend payments from the NNPC Limited during the two-month period.

Although N542.37 billion was projected as dividend contributions from the oil company for January and February, no remittance was recorded.

Consequently, total oil and gas revenue transferred to the federation account remained far below the budget target. While the expected inflow for the period stood at N937.10 billion, only N137.41 billion was received, leaving a gap of roughly N799.69 billion.

On February 18, Bola Ahmed Tinubu signed Executive Order 9, aimed at restructuring how oil revenues are paid into the federation account.

The order requires that proceeds from royalty oil, tax oil, profit oil, profit gas, and other government entitlements be remitted directly to the federation account.

Before the new directive, the NNPC Limited retained about 30 percent of PSC profit oil under provisions of the Petroleum Industry Act, in addition to keeping another 30 percent as management fees.

With the implementation of the executive order, the company’s ability to make such deductions from oil and gas revenues has effectively been halted.