*How Tinubu’s Executive Order 9 Unlocked ₦1.8 Trillion NNPC Remittance and Delivered Record FAAC Allocations to All Tiers of Government*

The Nigerian National Petroleum Company Limited’s February 2026 report shocked many: ₦1.804 trillion remitted to the Federation Account, up from ₦726 billion in January, with total revenue hitting ₦2.68 trillion. 

That surge wasn’t accidental. It’s the direct result of President Bola Ahmed Tinubu’s Executive Order 9, signed in mid-February 2026, mandating 100% remittance of oil and gas revenues to the Federation Account. 7541

*Historical Reviews of Remittances*

Before the PBAT's Executive Order 9, about 70% of revenues were retained by MDAs, with just 30% making it to FAAC. The Order fixed that by ensuring that all revenues (100%) now go straight into the Federation Account - no more deductions by MDAs.

1. The Policy Shift: Executive Order 9 and 100% Remittance

For years, Nigeria’s oil revenue was diluted before it reached the Federation Account. Under the Petroleum Industry Act 2021, NNPC Limited retained 30% as a management fee on profit oil/gas and another 30% for frontier exploration. 

NUPRC and NMDPRA also retained portions of royalties, taxes, and penalties. The result: deductions and off-budget charges diverted over two-thirds of potential remittances.

Various government MDAs like Nigerian Custom Service also retain some amount and the remainder sent to Federation Account.

Executive Order 9, signed on February 13, 2026, ended that. The Order:

- *Suspended* NNPC’s collection of the 30% Frontier Exploration Fund and 30% management fee.

- *Mandated direct payment* of royalty oil, tax oil, profit oil, profit gas, and all PSC revenues straight to the Federation Account.

- *Stopped* gas flare penalties from flowing to the Midstream and Downstream Gas Infrastructure Fund, redirecting them to the Federation Account.

- *Established* an inter-agency Implementation Committee chaired by the Minister of Finance to enforce compliance.

The legal basis was Section 5 of the 1999 Constitution, anchored on Section 44(3) which vests mineral ownership in the Federation. 

As the Presidency put it, the Order was meant to “restore the constitutional revenue entitlements of federal, state, and local governments” that had been eroded by the PIA framework.

2. The Immediate Impact: Unprecedented Remittances and FAAC Growth

The numbers tell the story.

*NNPC Remittances:*

- February 2026 statutory remittance: ₦1.804 trillion, a 148.5% jump from ₦726 billion in January.

- Within two months of implementation, NNPC and NUPRC remitted over ₦322 billion and $116.9 million following EO 9. ee532155

*FAAC Allocations:*

- February 2026: ₦1.894 trillion shared to FG, states, and LGs from gross revenue of ₦2.230 trillion.

- March 2026: ₦2.036 trillion shared from gross revenue of ₦2.364 trillion. This marked the second time in 2026 that disbursements crossed the ₦2 trillion mark.

- Gross statutory revenue for March rose to ₦1.699 trillion, up ₦137.914 billion from February. 

This means more money reached the Federal Government ₦789.159 billion, states ₦657.596 billion, and LGs ₦468.826 billion in March alone. Oil-producing states also got ₦120.759 billion as 13% derivation. ac51

3. Why It Matters: Fiscal Breathing Room for All Tiers

Higher FAAC allocations are already changing the fiscal outlook for subnationals. States gain stronger capacity to pay salaries, clear arrears, and fund capital projects. 

With 55% of VAT now allocated to states under the revised formula, the combination of higher oil remittances and VAT reform is giving governors real fiscal breathing room. 

For the Federal Government, the inflow reduces reliance on borrowing and strengthens the ability to fund education, healthcare, and infrastructure. 

4. Recommendations to Sustain and Deepen the Gains

The EO 9 framework is a strong start, but sustainability requires follow-through:

1. *Protect the Implementation Committee’s Independence*: The committee chaired by the Minister of Finance must have teeth to audit, sanction, and publish compliance reports monthly. Transparency builds public trust.

2. *Digitize Revenue Tracking*: Link NNPC, NUPRC, NMDPRA, and CBN systems to a real-time dashboard. This closes loopholes and prevents reversion to “retention” practices.

3. *Ring-Fence Augmentation for Capital Projects*: Part of the ₦200 billion augmentation should be tied to verifiable infrastructure and social programs at state and LG levels.

4. *Review NNPC’s Commercial Model*: With deductions removed, NNPC should operate strictly as a commercial entity funded through appropriation, not deductions at source.

5. *Engage States on Spending Accountability*: Higher allocations mean higher expectations. Publish state-level FAAC spending reports to ensure funds translate to roads, schools, and hospitals. 75412248cf34

5. Conclusion

Executive Order 9 corrected a structural flaw that had bled the Federation Account for years. By enforcing Section 162 of the Constitution and stopping deductions at source, the Tinubu administration unlocked ₦1.8 trillion in a single month from NNPC and pushed FAAC disbursements to ₦2.036 trillion. 

The policy proves that when revenue follows the constitution, all tiers of government benefit.

Commendation: PBAT’s Economic Reforms Delivering Results

This is what decisive leadership looks like. President Bola Ahmed Tinubu’s economic reforms, from subsidy removal to fiscal realignment, have been tough but necessary. 

Executive Order 9 is a landmark in that package. It reclaimed Nigeria’s oil wealth for Nigerians, aligned practice with the constitution, and delivered the highest FAAC allocations in recent history.

By cutting through decades of opacity and stopping the bleeding at source, PBAT has shown that reform is not just about pain, it’s about restoring what belongs to the people. 

If sustained, this trajectory will give states and LGs the resources to develop, reduce fiscal stress at the center, and rebuild confidence in Nigeria’s fiscal management. Nigeria is finally seeing the money that was always there.

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