Tinubu Executive Order on NNPCL Revenue Remittance Signals Major Oil Sector Reform
President Bola Tinubu has signed a sweeping Executive Order suspending the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPCL) and directing the full remittance of oil and gas revenues to the Federation Account. The move is designed to halt deductions at source and ensure that all proceeds due to the Federation are paid directly into government coffers.
The directive, disclosed by the Federal Ministry of Finance, seeks to realign revenue flows with the provisions of the 1999 Constitution of the Federal Republic of Nigeria, which vests ownership of mineral resources in the Federation. Officials say the order has become urgent amid a sustained decline in oil and gas inflows to the Federation Account, despite improved production levels and favorable global market conditions. The revenue shortfall has reportedly strained the government’s ability to fund education, healthcare, infrastructure, and other critical services.
Under the new order, NNPCL’s collection of management and frontier exploration fees is suspended, while payments of gas flare penalties into the Midstream Gas Infrastructure Fund are halted. The directive also clarifies the roles of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to eliminate regulatory overlaps. An inter-agency implementation committee chaired by the Minister of Finance and Coordinating Minister for the Economy will oversee execution.
The Executive Order also revisits fiscal structures introduced under the Petroleum Industry Act, which commercialized NNPC into a limited liability company and restructured the oil and gas sector. According to the ministry, some post-PIA arrangements created off-budget deductions that weakened transparency. The order is described as an interim corrective measure pending legislative amendments to entrench the reforms permanently.
NNPCL remains central to Nigeria’s fiscal stability. The company remitted N14.706 trillion in statutory payments to the Federal Government in 2025, generated N60.5 trillion in revenue, and posted N5.76 trillion in profit after tax. For many Nigerians, the new directive signals tighter oversight of oil revenue administration — and potentially more funds available for public services if fully implemented. Analysts say the coming months will reveal whether the reforms translate into tangible economic relief for citizens.
source: nairametrics