President Bola Ahmed Tinubu has signed an executive order mandating the direct remittance of oil and gas revenues to the federation account, in a move aimed at curbing revenue leakages and boosting government earnings.
Presidential spokesman Bayo Onanuga disclosed this in a statement on Wednesday, noting that the directive is designed to safeguard oil and gas revenues, eliminate duplicative structures and restore full constitutional allocations to the federal, state and local governments.
According to the presidency, the order addresses revenue deductions introduced under the Petroleum Industry Act (PIA), which permitted NNPC Limited to retain 30 per cent of profit oil and gas as a management fee, 20 per cent of profits for working capital and investments, and another 30 per cent for the Frontier Exploration Fund.
Under the new directive, NNPC will no longer retain the 30 per cent allocated to the Frontier Exploration Fund or the 30 per cent management fee. All royalty oil, tax oil, profit oil and profit gas due to the federation are to be paid directly into the federation account with effect from February 13, 2026.
President Tinubu also suspended the payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, directing that such proceeds be remitted to the federation account instead.
The President described the reforms as urgent and necessary to strengthen national budgeting, enhance debt sustainability and stabilise the economy. He also confirmed that a comprehensive review of the Petroleum Industry Act is underway to align it with current fiscal realities and national development priorities.
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