Federation oil earnings from Nigerian National Petroleum Company Limited’s Production Sharing Contract profit distribution fell by N78.71bn in March 2026, despite a strong rally in global crude oil prices during the month, an analysis of NNPC reports presented at Federation Account Allocation Committee meetings has shown.
According to reports, PSC total distribution to the Federation Account dropped from N121.34bn in February 2026 to N42.64bn in March 2026, representing a decline of 64.9 per cent month-on-month. The March 2026 figure was also significantly lower than the N204.96bn recorded in March 2025, indicating a year-on-year drop of N162.33bn or 79.2 per cent.
The decline came despite rising international crude oil prices in March 2026, driven by escalating geopolitical tensions in the Middle East and concerns over disruptions to global oil supply routes.
According to the US Energy Information Administration, Brent crude prices climbed sharply during the first quarter of 2026, crossing the $100 per barrel mark on March 12 and closing the quarter at around $118 per barrel after renewed military tensions in the Middle East and fears surrounding the Strait of Hormuz.
