The Federation Account Allocation Committee (FAAC) received the full 100 percent profit oil from Production Sharing Contracts (PSCs) remitted by the Nigerian National Petroleum Company Limited (NNPC) in February, marking a significant shift in Nigeria’s oil revenue management.
Documents detailing the February oil and gas revenue distribution confirm that the remittance has already been credited to the federation account.
The development signals the early implementation of Executive Order 9, recently signed by President Bola Tinubu, which seeks to improve transparency and ensure that oil revenues due to the federation are fully remitted.
Under Production Sharing Contracts, international oil companies and the Nigerian government share profits from crude oil production after operational costs are recovered. The decision to remit the entire profit oil to FAAC is expected to strengthen federal, state and local government revenues, particularly at a time when public finances remain under pressure.
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Industry analysts say the move could increase monthly allocations to the three tiers of government if sustained, while also addressing long standing concerns about revenue leakages in the oil and gas sector.
Further details on the February FAAC distribution and the implications of the new policy are expected in the coming days.
