The Nigerian National Petroleum Company Limited (NNPC Ltd.) has remitted the full proceeds from its Production Sharing Contract (PSC) profits to the Federation Account for February 2026, signalling the implementation of Executive Order 09 signed by President Bola Tinubu. This development has been confirmed, marking a significant change in revenue distribution.
The Presidency has also addressed claims made by Peter Obi, former presidential candidate of the Labour Party, regarding Nigeria's fuel prices. The presidency refutes the assertion that the rising petrol prices are primarily due to the absence of a strategic petroleum reserve, characterising the argument as inaccurate and a misinterpretation of global energy market dynamics.
Concurrently, Governor Hope Uzodimma of Imo State has stated that President Tinubu's administration has protected Nigeria from the global fuel crisis exacerbated by the conflict in the Middle East.
Documents from the March meeting of the Federation Account Allocation Committee (FAAC) reveal that the government received 100% of the PSC profit generated in February, totalling N121.343 billion. This brings the cumulative remittance for January and February to N137.409 billion.
Analysis of the figures shows that in January 2026, prior to the full enforcement of the executive order, only 40% of the PSC profit remitted to the Federation amounted to N16.066 billion. The difference in remittances between January and February represents an increase of approximately N105.33 billion.
The NNPC's presentation at the March FAAC meeting, titled ‘February 2026 NNPC Oil & Gas Revenue and Distribution to FAAC,’ detailed this remittance as the entirety of the federation's share of PSC profits, reflecting the new distribution policy.
Against the backdrop of an annual budget estimate for PSC profit set at N2.368 trillion, which translates to a monthly target of N197.367 billion and a year- to-date projection of N394.733 billion for the first two months of the year, actual receipts fell notably short.
According to an analysis by THISDAY, the federation experienced a shortfall of N257.324 billion compared to the year-to-date budget benchmark of N394.733 billion, indicating a variance of 65.2 per cent below the target.
Despite the shortfall, the February remittance aligns with the new policy framework established by Executive Order 09, which mandates the complete transfer of PSC profits to the federation account.
A note accompanying the FAAC presentation clarified that while January 2026 PSC distribution followed the Petroleum Industry Act's (PIA) prescribed 30:30:40 ratio, distributions from February 2026 onwards are in compliance with Executive Order 09, 2026.
President Tinubu's Executive Order 09, issued in February 2026, directs the direct remittance of all oil and gas revenues, including royalties, taxes, and profit oil/gas, into the Federation Account.
Further details from the FAAC presentation also addressed the expected calendarised interim dividend from NNPC.
The document indicated an annual budget estimate of N3.254 trillion for interim dividends from the national oil company, with a monthly target of N271.184 billion and a two-month projection of N542.368 billion.
However, NNPC recorded zero interim dividend for both January and February, resulting in a year-to-date actual figure of nil. This led to a negative variance of N542.368 billion, signifying that the federation received no anticipated dividend income during the first two months of the year.
The significant variances in the revenue profile underscore persistent challenges within Nigeria's oil sector, particularly production constraints that have kept the country's output below its OPEC quota of 1.5 million barrels per day.
Presidency Counters Obi on Petrol Price Hike, Cites Market Forces, Not Reserve Absence
In response to Peter Obi's comments, Mr. Olusegun Dada, Special Assistant to the President on social media, stated that the recent increase in petrol prices is a consequence of market forces following the deregulation of the petroleum sector by the Tinubu administration.
Dada explained via his X (formerly Twitter) handle that in a deregulated market, fuel prices are affected by a confluence of global factors, including crude oil prices, exchange rates, shipping costs, and supply risks.
He further elaborated that the removal of fuel subsidies has aligned domestic fuel costs with international market realities, meaning global oil market developments now directly influence local pump prices.
"In a deregulated system, petrol prices respond directly to global oil prices, exchange rates, shipping costs and supply risks," Dada stated.
He pointed out that recent geopolitical tensions involving Iran have contributed to a rise in global oil prices, a development that inevitably impacts import-dependent nations like Nigeria.
The presidential aide also dismissed the notion that establishing a strategic petroleum reserve would automatically stabilise or control everyday fuel prices.
Dada clarified that even nations with substantial strategic petroleum reserves maintain them primarily for emergency situations like wars, embargoes, or significant supply disruptions, rather than for routine price management.
Imo State Governor, Uzodimma, also commented on the economic situation, asserting that President Tinubu has shielded Nigeria from the global fuel crisis.
Speaking to members of the City Boy Movement in Owerri, Uzodimma credited Tinubu's reforms for preventing fuel scarcity and domestic price hikes, despite the ongoing Middle East crisis.
He also noted that the Naira has remained stable at N1,240, contrasting with significant volatility experienced by other African currencies amidst the Middle East conflict.
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