In what marks a significant victory for the President Bola Ahmed Tinubu administration’s drive for fiscal transparency, the Federation Account has received a substantial boost following the strict enforcement of Executive Order 9 of 2026.
Fresh documents obtained from the Federation Account Allocation Committee (FAAC) meetings in March and April reveal that the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have remitted a combined N322 billion and $116.9 million within just two months of the new directive.
Ending the Era of “Opaque Deductions”
For years, the Nigerian public and the three tiers of government have lamented the “siloed” nature of oil revenues, where the NNPC often deducted operational costs, subsidies, and management fees at the source before remitting the “leftovers” to the federation. Executive Order 9, signed in February 2026, effectively ended this practice.
Invoking Section 5 and Section 44(3) of the Constitution, President Tinubu mandated that 100% of crude oil and gas receipts be paid directly into the Federation Account. The President’s stance was clear: “When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end.”
A Breakdown of the Windfall
The data shows a disciplined compliance curve:
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February Receipts (Shared in March): The NNPC remitted 100% of its earnings, totaling $87.63 million and N121.34 billion.
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March Receipts (Shared in April): An additional $29.28 million and N42.64 billion were remitted.
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Regulatory Contributions: The NUPRC added N34.2 billion in March from royalties, gas flare penalties, and concession rentals.
While the NUPRC’s March figures showed a decline from its February collection of N124.4 billion—largely due to a drop in royalty collections—the transparency of the reporting has been hailed as a departure from the “black box” accounting of the past.
Strengthening the Federation
The Secretary to the Government of the Federation, Sen. George Akume, noted that these remittances are not just numbers but the “lifeblood of the Renewed Hope Agenda.” With increased FAAC allocations, state governors are now under increased pressure to replicate this transparency at the local level.
As the Federal Government plugs these historical leakages, the focus now shifts to how these “unlocked” funds will be utilized to stabilize a national economy grappling with inflationary pressures and infrastructure deficits.
