President Bola Ahmed Tinubu has directed the payment of oil and gas entitlements to the Federation Account following an Executive Order signed to safeguard revenues from the sector.
President Tinubu explained that for too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account.
“When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end,” he said.
“With Order 9 of 2026 (Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026) which has now been gazetted, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing and related contracts will now be paid directly into the Federation Account.”
The President disclosed that the additional 30 per cent management fee and the 30 per cent frontier exploration deduction will no longer stand in the way of national revenues, noting that his administration’s objective is transparency, accountability, and full constitutional compliance.
He stated that oil and gas revenues must serve the Nigerian people first and that the reform is about fairness and fiscal responsibility.
“As we strengthen national security, invest in education, expand healthcare, stabilise the economy, and advance our energy transition, every legitimate naira due to the Federation must be protected,” President Tinubu said.
He stressed that the Nigerian National Petroleum Company Limited (NNPCL) will operate strictly as a commercial enterprise, as intended under law, adding that the era of duplicative deductions and fragmented oversight is over.
The President also assured that his administration would undertake a comprehensive review of the Petroleum Industry Act (PIA) to address structural and fiscal anomalies that weaken national revenue.
Tinubu further revealed that he has approved the establishment of an Implementation Committee to oversee and ensure the effective and coordinated implementation of the Executive Order.
He argued that Nigeria can no longer afford leakage where there should be leadership, reiterating that his administration is safeguarding the Federation Account, strengthening the budget, and acting in the national interest.
