President Bola Ahmed Tinubu has signed an executive order directing that all oil and gas revenues due to the federation be paid directly into the federation account.
The directive, announced by Bayo Onanuga, presidential spokesman is aimed at blocking revenue leakages, simplifying remittance structures, and ensuring full constitutional allocations to the federal, state and local governments.
According to the presidency, the order revises revenue retention arrangements introduced under the Petroleum Industry Act, which allowed NNPC Limited to withhold portions of profit oil and gas earnings for management fees, working capital, investments and the Frontier Exploration Fund.
Under the new policy, NNPC will no longer retain the 30 per cent previously set aside for the Frontier Exploration Fund or the 30 per cent management fee.
All royalty oil, tax oil, profit oil and profit gas accruing to the federation must now be remitted in full to the federation account, effective February 13, 2026.
The President also suspended the remittance of gas flare penalties to the Midstream and Downstream Gas Infrastructure Fund, directing that such proceeds be paid into the federation account instead.
Tinubu described the measures as critical to improving fiscal discipline, strengthening budget performance, enhancing debt sustainability and stabilising the broader economy.
He added that a broader review of the Petroleum Industry Act is underway to reflect current economic priorities and national development goals.
