The Nigerian National Petroleum Company has reported a significant 60 percent increase in remittances to the Federation Account, reaching N2.88 trillion in March 2026, up from N1.80 trillion in February. The surge follows an executive order signed by President Bola Tinubu in February, which prohibits the NNPC from deducting 30 percent of its profit for the Frontier Exploration Fund and another 30 percent for management fees. The order mandates that all oil and gas royalties, taxes, and profits be remitted directly to the Federation Account to maximise government revenue.
The NNPC also reported a substantial increase in net profit, with after‑tax profit jumping from N136 billion in February to N276 billion in March, representing an increase of over 100 percent. Total revenue for the period stood at N2.77 trillion, slightly above the N2.68 trillion recorded in February. Operational improvements contributed to the positive performance. Crude oil production increased from 1.27 million barrels per day in February to 1.32 million barrels per day in March, while condensate production remained steady at 240,000 bpd.
The company noted year-on-year production increases driven by asset reliability initiatives and targeted recovery plans. However, a leak on the Trans Forcados Pipeline caused a shutdown that impacted production at several fields from 20 February to 25 March.
From a fiscal policy perspective, increased NNPC remittances provide the government with additional resources to fund infrastructure and social programmes without increasing debt. However, the sustainability of these inflows depends on continued production growth, security in the oil-producing regions, and disciplined management of the federation account.
