Federation Oil Revenues Plunge by N78.7bn in March Despite Soaring Crude Prices
Federation oil earnings from Nigeria’s PSC fell by N78.7bn in March 2026, even as Brent crude topped $100 per barrel. Data presented at FAAC meetings shows payouts dropped from N121.34bn in February to N42.64bn, a 64.9% month-on-month decline and a 79.2% year-on-year slump. In Q1 2026, total PSC distribution stood at N180.05bn against N438.54bn in the same period of 2025, missing budget targets by N412.05bn. January receipts plunged to N16.07bn from N105.91bn a year earlier, while March figures slid from N204.96bn to N42.64bn. Since February 2026, Executive Order 9 has channelled 100% of PSC proceeds into the Federation Account, scrapping the previous 30:30:40 deductions for NNPC fees and frontier exploration. However, the overall revenue pool remains weak, yielding only a marginal increase over the old framework. Analysts point to long transaction cycles, crude output levels, and forward sales arrangements as key factors limiting the immediate impact of higher prices on national revenue.
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