According to Premium Times reporting, President Bola Tinubu has signed a transformative Executive Order requiring that all oil and gas revenues be remitted directly into the Federation Account. This move is designed to eliminate the previous system where the Nigerian National Petroleum Company Limited (NNPCL) retained significant portions of revenue for “cost of production” and subsidies before remitting the balance to the government.
The directive seeks to bring the NNPCL in full alignment with the Petroleum Industry Act (PIA), effectively stripping it of its role as a quasi-fiscal agent. By centralizing these inflows, the Federal Government aims to curb systemic leakages and ensure that the three tiers of government receive their fair share of mineral earnings promptly.
Experts believe this shift will significantly enhance the transparency of Nigeria’s primary revenue earner. The presidency noted that the NNPCL must now operate strictly as a commercial entity, seeking its funding through the National Assembly like other agencies or through its own commercial profits.
This development was further detailed by The Punch, which noted that “this order corrects a long-standing fiscal imbalance created by the misinterpretation of the PIA.” Similarly, Leadership reported that “the move has been met with praise from state governors who have long complained about the NNPCL’s opaque deduction system.”
Echotitbits take: This is a bold attempt at fiscal sanitization. While it simplifies revenue tracking, watch for potential friction between the NNPCL leadership and the Ministry of Finance regarding operational funding for joint venture cash calls.
Source: The Nation – https://thenationonlineng.net/s-south-governors-agbakoba-back-tinubus-eo-on-oil-revenue-remittance/, February 27, 2026
Photo credit: The Nation
