Nigeria’s Federal Inland Revenue Service (FIRS) collected N220.09bn in February 2026 as oil royalties, representing a sharp increase of 87.6 per cent compared to the figure for January,
According to latest data from the Federation Account Allocation Committee, the surge from the oil and gas followed the implementation of the Executive Order 9 which mandates the centralisation of revenue collection in the sector.
The report by Punch newspaper on Saturday stated that oil and gas royalties rose sharply to N471.27bn in February 2026, marking an increase of 87.6 per cent from the N251.18bn recorded in January.
The report noted that the figures indicate a month-on-month increase of N220.09bn, highlighting a significant boost in government revenue from the upstream oil and gas sector within a short period.
An analysis of the figures indicates that the N220.09bn variance represents one of the most significant month-on-month increases in oil royalty inflows in recent times, underscoring the early impact of the Federal Government’s revenue reform policy.
The sharp rise in royalty collections follows the implementation of Executive Order 9, which mandates the centralisation of oil and gas revenue collection under a unified framework coordinated by the Nigerian Revenue Service.
It also comes despite a decline in Nigeria’s crude oil production during the same period, pointing to the fact that the improved revenue came as a result of centralised collection efficiency rather than increased crude oil output.
Available industry data show that Nigeria’s average daily crude oil production dropped slightly from about 1.43 million barrels per day in January 2026 to approximately 1.41 million barrels per day in February 2026.
This marginal decline reflects ongoing challenges in the sector, including pipeline vandalism, crude theft, and intermittent operational disruptions in key producing areas.
Ordinarily, a dip in production would be expected to translate into lower royalty inflows, given that royalties are
largely volume-based and tied to output levels. However, the opposite was observed, as royalty collections surged by 87.6 per cent within the same period.
The development also suggests that factors such as better pricing benchmarks, improved monitoring of production volumes, and tighter reconciliation processes may have contributed to the higher revenue outturn.
The report added that this trend reinforces longstanding concerns within the industry that Nigeria’s oil and gas sector has historically suffered from revenue leakages and weak oversight, rather than purely production constraints.
With Executive Order 9 now in effect, experts believe that sustained enforcement could help Nigeria maximise earnings from existing production levels, even before achieving significant output growth.
GIK/APA