Federation oil earnings from NNPC’s Production Sharing Contract profit distribution fell by N78.71 billion in March 2026, despite a strong rally in global crude oil prices driven by Middle East tensions. The PSC total distribution dropped from N121.34bn in February to N42.64bn in March, a 64.9 per cent decline.
Executive Order 9, signed by President Tinubu in February, eliminated NNPC management fees and frontier exploration deductions, giving the Federation 100 per cent of PSC proceeds. However, total Q1 2026 PSC earnings stood at only N180.05bn, compared to N438.54bn in Q1 2025.
Key Points:
Higher crude prices (over $100 per barrel) did not translate into higher Federation revenues.
Executive Order 9 removed NNPC deductions, but the revenue pool shrank dramatically.
Projected interim dividends of N813.55bn were not remitted at all in Q1 2026.
Total shortfall between projected and actual oil revenue reached N1.23 trillion.
Experts blame transaction cycles, low production, and forward crude sales for the lag
Sources: The PUNCH, NNPC reports, FAAC documents
