Tinubu signs order to redirect oil revenue to Federation Account
President Bola Tinubu has signed an Executive Order mandating the Nigerian National Petroleum Company Limited (NNPCL) to halt collection of management and frontier exploration fees, ensuring full remittance of oil and gas revenues to the Federation Account. The directive, disclosed by the Federal Ministry of Finance, aims to align revenue flows with constitutional provisions, curb leakages, and strengthen fiscal transparency amid declining federal inflows despite improved production and favourable market conditions. The order suspends NNPCL's fee collection, halts gas flare penalties to the Midstream Gas Infrastructure Fund, clarifies regulatory responsibilities between petroleum bodies, and establishes an inter-agency implementation committee chaired by the Finance Minister. It takes immediate effect as an interim measure pending legislative amendments. NNPCL remitted N14.706 trillion to the Federation in 2025, with total revenue of N60.5 trillion and profit after tax of N5.76 trillion. Will this policy improve federal revenue management or create operational challenges for NNPCL?