Oil and gas royalty collections by the Nigeria Revenue Service (NRS) surged by ₦220.09 billion in February 2026, marking an 87.6% increase from January, following the implementation of Executive Order 9, which centralised revenue collection in the sector.
Federation Account Allocation Committee (FAAC) data show that royalties rose to ₦471.27 billion in February from ₦251.18 billion in January, despite a slight decline in crude oil production from 1.43 million barrels per day in January to 1.41 million barrels per day in February. This indicates that the revenue boost is linked to improved collection efficiency rather than higher output.
The Executive Order, which places all oil and gas revenue under a centralised framework coordinated by the NRS, aims to reduce historical revenue leakages and improve oversight. Analysts suggest that better monitoring, tighter reconciliation processes, and improved pricing benchmarks also contributed to the higher inflows.
In addition to royalties, upstream petroleum taxes remained strong, with Petroleum Profit Tax collections at ₦159.99 billion and upstream Company Income Tax at ₦148.89 billion. Overall, the Federal Inland Revenue Service (FIRS) reported total revenues exceeding ₦1.14 trillion for February, highlighting the sector’s critical role in fiscal stability.
Experts note that sustained enforcement of Executive Order 9, coupled with stakeholder cooperation and strict compliance monitoring, could help Nigeria maximise earnings from existing production levels, even before achieving major increases in output.
The development underscores the importance of fiscal reforms in enhancing transparency, strengthening revenue assurance, and supporting the country’s economic stability amid ongoing fiscal pressures.
