Nigeria’s oil and gas royalty earnings recorded a sharp rebound in February, rising by 87.6 per cent month-on-month to ₦471.27bn, as the Federal Government’s new revenue framework began to take effect. Latest data from the Federation Account Allocation Committee (FAAC) shows an increase of ₦220.09bn compared to the ₦251.18bn posted in January, signalling one of the strongest revenue surges in recent years.
The spike follows the implementation of Executive Order 9, which mandates the centralisation of oil and gas revenue collection under a unified system coordinated by the Nigerian Revenue Service. The policy is designed to plug leakages, improve transparency, and ensure more efficient remittance of funds into the Federation Account a long-standing challenge in the sector.
Interestingly, the surge in royalties comes despite a slight decline in crude oil production, which fell from about 1.43 million barrels per day in January to 1.41 million barrels per day in February. Under normal conditions, lower output would translate to weaker royalty inflows. However, the latest figures suggest that improved collection efficiency, tighter monitoring, and better price benchmarks are now playing a more decisive role in revenue performance.
Further breakdown of the FAAC data shows strong contributions from upstream taxes, with Petroleum Profit Tax (PPT) generating ₦159.99bn, while upstream Company Income Tax added ₦148.89bn. Combined with other tax streams, total oil and gas-related revenue exceeded ₦780bn, reinforcing the sector’s critical role in sustaining government finances amid rising fiscal pressures.
Industry analysts say the early gains from Executive Order 9 highlight the scale of revenue leakages that previously plagued Nigeria’s oil sector. However, they warn that sustaining this momentum will require strict enforcement, institutional discipline, and full compliance across the value chain, especially as the country continues to battle crude theft, pipeline vandalism, and operational disruptions.