Uncertainty has gripped Nigeria’s oil and gas sector following President Tinubu’s new directive mandating key petroleum agencies to remit revenues directly to the federation account.
The directive, which affects the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission, has raised concerns over how the agencies will fund their statutory operations.
A senior industry official familiar with the development said the order could disrupt regulatory efficiency if not carefully implemented.
According to the source, “there is growing concern within the sector. If all revenues are to be paid directly into the Federation Account without a clearly defined funding mechanism, it may impact operational effectiveness.”
Another stakeholder stressed the need for clarity to avoid unintended consequences.
“Transparency is important, but there must be a sustainable framework to ensure these agencies can continue to discharge their responsibilities effectively under the Petroleum Industry Act,” the stakeholder stated.
According to industry watchers, consultations are ongoing to seek clarification on the implementation process and funding structure.
This newspaper recalls that the commission paid about N88bn as salaries and allowances to its staff in 2024, while it also generated approximately N322.8bn in 2025 from the four per cent cost of collection, which serves as a major funding source for operations and welfare.
