Figures from the February 2026 oil and gas revenue distribution report presented to the Federation Account Allocation Committee (FAAC), obtained by TheCable on Saturday, show that the federation received 100 percent of PSC profit oil for the month.
This represents a departure from the previous arrangement under which the federation account received only about 40 percent of PSC profit oil.
The report indicates that NNPC Ltd. remitted N121.34 billion to FAAC as profit oil from PSCs in February. The amount marks a sharp increase from the N16.07 billion recorded in January, bringing the year-to-date remittance to N137.41 billion.
The increase in remittance reflects the early implementation of Executive Order 9, recently signed by President Bola Ahmed Tinubu, which mandates that government oil revenues be paid directly into the federation account rather than retained or deducted by the national oil company.
However, despite the improved February inflow, overall remittances from PSC profit oil still fell significantly below projections for the period under review.
According to the FAAC document, about N394.73 billion in PSC revenue had been budgeted for January and February combined, leaving an actual shortfall of approximately N257.32 billion.
The report also showed that the federation did not receive any interim dividend payments from NNPC Ltd. during the first two months of the year. While N542.37 billion had been projected as dividend payments for January and February, no remittance was recorded during the period.
As a result, total oil and gas revenue inflows into the federation account were far below budget expectations. While the combined projection for the two-month period stood at N937.10 billion, the actual remittance amounted to N137.41 billion, leaving a variance of about N799.69 billion.
President Tinubu signed Executive Order 9 on February 18, 2026, introducing a new framework for oil revenue remittances. The directive requires that royalty oil, tax oil, profit oil, profit gas, and other government entitlements be paid directly into the federation account.
Before the order, the NNPC was allowed under the Petroleum Industry Act to retain about 30 percent of PSC profit oil, in addition to another 30 percent as a management fee.
With the implementation of the executive order, the national oil company’s authority to deduct oil and gas revenues at source has effectively been terminated, paving the way for direct remittance of government earnings to the federation account.