Nigeria's Oil Earnings Drop N78.7bn Despite Price Surge

In March 2026, Nigeria's federation oil earnings fell by N78.7 billion, despite a significant rise in global crude oil prices, which reached approximately $118 per barrel. The total distribution from the federation account dropped to N42.64 billion, a 64.9% decline from February 2026 and a 79.2% decrease from March 2025, which recorded N204.96 billion.

The report from the Nigerian National Petroleum Corporation (NNPC) indicated that the total profit-sharing contract (PSC) distribution for the first quarter of 2026 was N180.05 billion, down 58.9% from N438.54 billion in the same period in 2025. This decline followed President Bola Tinubu's Executive Order 9, which mandated that oil revenue due to the federation be remitted directly to the federation account, limiting deductions for management fees and other funds.

The changes aimed to safeguard oil revenue and strengthen remittances to the federation account, addressing structural distortions in the oil and gas sector.