President Bola Tinubu has ordered that all oil and gas revenues be paid directly into Nigeria’s federation account, ending longstanding retention arrangements by NNPC and regulators to strengthen public finances.
President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, the presidency said on Wednesday, in a sweeping reform aimed at boosting public finances. Under existing law, the Nigerian National Petroleum Corporation (NNPC) retained 30% of oil and gas profits for frontier exploration, a provision now scrapped under the new directive.
The order mandates that revenues from operational costs, Production Sharing Contracts, royalties and petroleum profit taxes previously retained by NNPC and regulators be remitted in full to the federation account, with agencies funded through appropriations instead. Tinubu’s office said deductions had “sharply reduced net oil inflows” and worsened fiscal strain, adding that the president has ordered a legal review and set up an implementation committee to enforce the changes.