Six months after President Bola Tinubu ordered sweeping changes to Nigeria’s petroleum revenue management, government records show that N211.74bn has accumulated in frontier exploration and gas-flaring penalty accounts, while N92.59bn in Nigerian National Petroleum Company Limited management fees has been distributed to the three tiers of government.
The figures, contained in ledgers from the Office of the Accountant-General of the Federation, raise questions about the implementation of Executive Order 9 of 2026, which was designed to end specified deductions from petroleum revenues and increase funds available for distribution to the Federal Government, states and local governments.
The records were presented in documents associated with the Federation Account Allocation Committee’s September meeting held at the Federal Ministry of Finance headquarters in Abuja to consider the August 2026 accounts.
The technical sub-committee’s report, dated 14 October, was obtained by The PUNCH on Tuesday.
The Frontier Exploration Fund ledger recorded cumulative receipts of N106.75bn between February and September 2026. The gas-flaring penalty ledger showed N104.98bn transferred into a FAAC withheld escrow account between February and October.
Combined, the two accounts recorded N211.74bn, with no payments listed against the frontier exploration balance and no payments recorded against the gas-flaring penalty ledger during the period.
The figures come amid the Federal Government’s effort to ensure that more petroleum revenue flows directly into the Federation Account rather than being retained in dedicated funds or deducted before distribution.
Tinubu signed Executive Order 9 on 13 February, 2026, to realign petroleum revenue flows with constitutional provisions and address what the government described as structural revenue leakages under the Petroleum Industry Act 2021.
The order suspended NNPC Limited’s 30 per cent management fee and 30 per cent Frontier Exploration Fund deductions from profit oil and profit gas under specified petroleum contracts. It also suspended the remittance of gas-flaring penalties into the Midstream and Downstream Gas Infrastructure Fund.
Announcing the implementation arrangements after the inaugural meeting of the implementation committee on February 26, former Finance Minister Wale Edun said, “In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30 per cent management fee and the 30 per cent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts. Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund are suspended with immediate effect, in line with the Executive Order”.
The directive was intended to strengthen revenue transparency and ensure that petroleum earnings due to the Federation were available for distribution in accordance with constitutional and statutory requirements.
According to the directive, the President invoked Section 5 of the Constitution of the Federal Republic of Nigeria (as amended), anchored on Section 44(3), which vests ownership and control of all minerals, mineral oils, and natural gas in the Government of the Federation.
Tinubu said excessive deductions, overlapping funds, and structural distortions in the oil and gas sector had weakened remittances to the Federation Account and warned that the practice must end to protect national revenue.
“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account. When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end,” he said on his verified X handle.
However, the latest records show that the frontier exploration ledger continued to record receipts after the order took effect. The September entry alone amounted to N14.16bn, up from N6.90bn in August.
That represented an increase of N7.25bn, or approximately 105.1 per cent, in the monthly receipts recorded in the two periods.
The September receipt was also about 29.6 per cent higher than the N10.95bn recorded in May, although it was below the N36.40bn recorded in March.
The cumulative balance reached N106.75bn by September, compared with N92.59bn at the end of August, an increase of N14.16bn, or 15.3 per cent.
The figures raise questions about whether the receipts represent new deductions, delayed accounting entries, recoveries or amounts accruing under transitional arrangements.
The management-fee ledger presents another significant development. It recorded cumulative receipts of N92.59bn between February and August before listing a payment of the entire amount to the three tiers of government on 12 October.
The ledger subsequently recorded another N14.16bn as management fees for September on October 14, creating a new balance.
The N92.59bn payment represents the distribution of the full balance recorded through August.
A further breakdown of the data showed that the Frontier Exploration Fund recorded cumulative receipts of N106.75bn between February and September 2026, while the management-fee account received the same amount over the period, according to ledgers from the Office of the Accountant-General of the Federation.
The figures show that receipts into both accounts increased from N4.82bn in February to N14.16bn in September, although monthly inflows fluctuated considerably.
The identical monthly entries and cumulative balances in the two ledgers warrant clarification because the documents do not explain why the separate accounts contain exactly the same figures.
March recorded the highest monthly receipts in both accounts at N36.40bn, an increase of N31.58bn, or 655.3 per cent, from February. In April, receipts fell to N12.79bn, a decline of N23.61bn, or 64.9 per cent, from March. The amount dropped further to N10.95bn in May, representing a decrease of N1.84bn, or 14.4 per cent, from April.
Receipts rose to N12.10bn in June, an increase of N1.15bn, or 10.5 per cent, before falling to N8.63bn in July, a decline of N3.47bn, or 28.7 per cent. In August, the inflow dropped again to N6.90bn, down by N1.72bn, or 20 per cent, from July. September receipts then more than doubled to N14.16bn, rising by N7.25bn, or 105.1 per cent, from August.
The cumulative Frontier Exploration Fund balance rose from N4.82bn in February to N41.22bn in March, N54.01bn in April, N64.97bn in May, N77.07bn in June, N85.69bn in July and N92.59bn in August before reaching N106.75bn in September. No payments were recorded in the frontier exploration ledger during the period.