Tinubu signs EO to redirect oil revenue, curb NNPC fees
President Tinubu signed Executive Order to redirect oil and gas revenue, eliminating NNPC's 30% management fee on profit oil and gas. The order targets PIA provisions allowing NNPC to retain 30% of profits as Frontier Exploration Fund, which critics say encourages inefficient spending. NNPC also retains 30% under PIA sections 9(4)(5), creating large idle cash balances. The EO aims to restore constitutional revenue entitlements to federal, state, and local governments, which were reduced by PIA's 2021 amendments. NNPC's 30% retention is deemed unjustified as existing 20% retention suffices for its functions. The order also addresses the Midstream and Downstream Gas Infrastructure Fund (MDGIF), noting Section 103 already established an Environmental Remediation Fund for gas flaring impacts. Will this EO reduce wasteful spending and redirect funds to security, education, and energy transition investments?