President Bola Tinubu has signed an executive order mandating the direct remittance of oil and gas revenues to the Federation Account.
The directive aims to boost government earnings, block revenue leakages, and strengthen oversight in the petroleum sector.
According to a statement by Presidential Spokesman Bayo Onanuga, the order reinforces federal ownership of mineral resources as provided in the Constitution.
The President said the move would restore revenue entitlements of federal, state, and local governments affected by the Petroleum Industry Act.
Under the current framework, NNPC Limited retains 30 percent of the Federation’s oil revenues as a management fee on profit oil and gas.
The company also keeps 20 percent of its profits for working capital and future investments.
Another 30 percent of profit oil and gas had been allocated to the Frontier Exploration Fund.
The Federal Government, however, considers the 30 percent management fee unjustified.
The new order eliminates the management fee and removes NNPC Limited’s control over the Frontier Exploration Fund.
Funds previously earmarked for frontier exploration will now be paid directly into the Federation Account.
President Tinubu also suspended the payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund.
All gas flare penalties will henceforth be remitted to the Federation Account in line with public procurement regulations.
Effective February 13, 2026, all operators under production sharing contracts must remit royalty oil, tax oil, profit oil, and profit gas directly to the Federation Account.
The President has approved the establishment of an inter-ministerial implementation committee to oversee the reforms.
He described the measures as critical to strengthening national budgeting, debt sustainability, and economic stability, while announcing plans for a comprehensive review of the Petroleum Industry Act.
For More News-https://lagostalks.com/news/
