EXECUTIVE ORDER 9 DRIVES ₦322BN AND $116.9M SURGE IN OIL REMITTANCES TO NIGERIA'S TREASURY

John
6 hours ago
2 min read

*NNPC and NUPRC payments to Federation Account accelerate; Nigeria's dollar GDP hit $307.5bn in 2025*

A presidential executive order compelling government agencies to promptly remit revenues to the Federation Account has driven a significant acceleration in oil sector payments to Nigeria's treasury, with the NNPC and the Nigerian Upstream Petroleum Regulatory Commission adding over ₦322 billion and $116.9 million in fresh remittances directly attributable to the directive.

The surge in NNPC and NUPRC remittances followed the enforcement of President Tinubu's Executive Order 9, which mandates all government revenue-generating agencies to transfer proceeds directly and promptly to the Federation Account, closing long-standing gaps between revenues earned in the oil sector and funds actually received by the government.

The impact is measurable. NNPC's statutory payments to the Federation between January and March 2026 totalled ₦2.88 trillion, the highest quarterly remittance figure in recent years. Gas production at a 12-month high and crude output recovery at Bonga and other offshore assets have reinforced the revenue base.

In a parallel data point, Nigeria's dollar-denominated GDP surged 22% to $307.5 billion in 2025, driven by stronger non-oil economic output and a firmer naira, outpacing several African peers. The GDP expansion reflects both real growth and the naira's partial recovery, which translates more domestic activity into a larger dollar-equivalent economy.

For Nigerian businesses and the broader fiscal environment, higher remittances to the Federation Account reduce government reliance on Central Bank deficit financing, a pattern that historically injected excess naira liquidity into the economy and stoked inflation. A government that funds itself from revenue rather than printed money is structurally less inflationary.

The Tinubu administration has projected Federation Account allocations will remain elevated through 2026, supported by oil prices above the $64.85 budget benchmark and continued gas production growth.