Tinubu Signs EO to Redirect Oil & Gas Revenues to Federation Account
President Bola Tinubu has signed an executive order to redirect oil and gas revenues to the Federation Account, eliminating unjustified deductions that currently divert over two-thirds of potential earnings. The directive targets NNPC Limited's 30% management fee on profit oil and profit gas, which the government deems excessive given existing 20% profit retention. Additionally, the 30% Frontier Exploration Fund will be transferred to the Federation Account instead of being retained by NNPC. Gas flaring penalties will now go directly to the Federation Account rather than the Midstream and Downstream Gas Infrastructure Fund. The EO also suspends payments to the MDGIF and establishes a joint project team to oversee integrated petroleum operations. These reforms aim to restore constitutional revenue entitlements to federal, state, and local governments, enabling them to fund critical national priorities including security, education, healthcare, and energy transition investments.