Bola Tinubu, President of Nigeria, signed an executive order that mandated direct remittance of oil and gas revenues to the Federation Account. He issued the order on February 13, 2026, to align revenue flows with constitutional requirements. Moreover the Federal Ministry of Finance announced the development in a statement on February 18.
Suspension of NNPC Fees
Tinubu suspended the Nigerian National Petroleum Company Limited’s collection of 30 percent management fees and 30 percent frontier exploration funds. Moreover this move eliminated deductions at source by the company. Additionally he directed contractors to pay royalties, taxes, profit oil, and profit gas directly into the Federation Account.
Objectives of the Reform
The order aimed to safeguard oil and gas revenues for the federation. Tinubu intended to curb wasteful spending and eliminate duplicative structures in the sector. “The Executive Order is anchored on Section 44(3) of the Constitution,” the ministry’s statement explained. Furthermore, it sought to redirect resources for the benefit of Nigerians.
Addressing Revenue Leakages
Tinubu addressed leakages that weakened inflows into the Federation Account. Bayo Onanuga, Special Adviser on Information and Strategy to the President, highlighted the reform’s focus on transparency. “President Bola Tinubu has signed an executive order mandating direct remittance of oil and gas revenues to the Federation Account,” Onanuga stated.
Implications for Government
The directive boosted revenues available to federal, state, and local governments. It suspended gas flare penalty payments to the Midstream and Downstream Gas Infrastructure Fund.
Meanwhile funds supported priorities like security, education, and healthcare. Uloma Amadi, Assistant Director of Information and Public Relations at the Federal Ministry of Finance, noted that the order realigned flows to prevent deductions.
