President Bola Tinubu has signed an Executive Order to protect Nigeria’s oil and gas revenues, eliminate waste, and ensure funds are remitted directly to the Federation Account.
In a statement made available to The News Chronicle on Wednesday, Special Adviser to the President on Information & Strategy, Bayo Onanuga, confirmed that the order which has been officially gazetted, addresses duplicative deductions under the Petroleum Industry Act (PIA), including a 30% management fee and a 30% Frontier Exploration Fund previously retained by NNPC Limited, directing these funds to the Federation Account instead.
Effective February 13, 2026, all oil and gas operators are required to pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government dues directly to the Federation Account. Gas flare penalties will also now go to the Federation Account, with spending from the Midstream and Downstream Gas Infrastructure Fund fully aligned with public procurement laws.
The order repositions NNPC Limited as a commercial entity, removing its role as a concessionaire under production-sharing contracts, which the Presidency says have created conflicts and inefficiencies.
President Tinubu also approved a joint project team for integrated petroleum operations and an Implementation Committee, including the Ministers of Finance, Justice, Budget, and Petroleum Resources, the Nigeria Revenue Service, and presidential advisers to ensure coordinated enforcement.
The reforms aim to restore revenue to federal, state, and local governments, curb leakages, and support national budgeting, debt sustainability, and economic stability. The Presidency said a full review of the PIA will follow to fix remaining fiscal and structural gaps.
