Tinubu Orders Direct Revenue Remittance as NNPC Loses Key Deductions
Story: Written by Daniel February 19,2026
Bola Tinubu has issued a new executive order compelling Nigerian National Petroleum Company Limited to pay oil and gas revenues straight into the Federation Account, a move expected to unlock over ₦1.4 trillion for sharing among federal, state, and local governments.
The directive, gazetted on February 13, targets revenue leakages linked to deductions permitted under the 2021 Petroleum Industry Act (PIA). According to the presidency, these provisions have allowed NNPC to withhold more than two-thirds of potential remittances, weakening inflows to the account that funds Nigeria’s three tiers of government.
In a statement by presidential adviser Bayo Onanuga, the State House said the persistent drop in net oil revenue was driven by “excessive deductions and fragmented oversight” under the current PIA framework, noting that such charges far exceed international standards.
Under the new order, NNPC will no longer collect a 30 percent management fee on profit oil and gas from production, profit-sharing, and risk service contracts. The government argued the fee was unjustified since the company already retains 20 percent of profits for operations and future investments.
The executive order also halts the 30 percent Frontier Exploration Fund provided for under the PIA, with the administration warning that such a large pool for speculative exploration risks idle funds and waste at a time of pressing national needs, including security, healthcare, education, and energy transition.
In addition, oil and gas operators are now required to pay all government dues—such as royalty oil, tax oil, profit oil, and profit gas—directly into the Federation Account, removing NNPC’s intermediary role. Payments of gas flaring penalties into the Midstream and Downstream Gas Infrastructure Fund have also been suspended, with all proceeds redirected to the Federation Account. Any future spending from the fund will now be subject to public procurement rules.
The move signals a tougher stance by the Tinubu administration on revenue transparency and is expected to significantly boost funds available for national development.
