President Bola Tinubu has signed a landmark Executive Order to ensure the direct remittance of oil and gas revenues into the Federation Account, aiming to curb wasteful spending, eliminate duplicative structures, and safeguard critical resources for national development.
According to Mediaplusng.com, the Executive Order (EO), issued on February 13, 2026, is anchored in Sections 5 and 44(3) of the Nigerian Constitution. It affirms that all minerals, mineral oils, and natural gas in, under, and upon any land or territorial waters in Nigeria are the property of the Federal Government, and seeks to restore revenue entitlements previously diminished under the 2021 Petroleum Industry Act (PIA).
The EO addresses multiple layers of deductions under the current PIA framework, including NNPC Limited’s 30% management fee on profit oil and profit gas, the 20% retention for working capital, and the 30% allocation to the Frontier Exploration Fund. Mediaplusng.com reports that these overlapping structures have historically diverted over two-thirds of potential remittances away from the Federation Account, creating fiscal inefficiencies and limiting resources for national priorities such as security, education, healthcare, and energy transition projects.
Under the Executive Order, all oil and gas operators under Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts are mandated to pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other government interests directly into the Federation Account. NNPC Limited will no longer retain the 30% Frontier Exploration Fund nor the 30% management fee previously collected, ensuring full transparency and direct federal remittance. Mediaplusng.com notes that Gas Flare Penalty payments to the Midstream and Downstream Gas Infrastructure Fund are also suspended, with proceeds redirected to the Federation Account under strict public procurement compliance.
President Tinubu emphasizes that the reforms are of urgent national importance, citing implications for budgeting, debt sustainability, economic stability, and overall public welfare. He announces a comprehensive review of the Petroleum Industry Act in collaboration with relevant stakeholders to address structural and fiscal anomalies, ensuring the sector aligns with global best practices while maximizing revenue for the Nigerian people.
To implement the EO effectively, the President has constituted an Implementation Committee comprising the Minister of Finance and Coordinating Minister of the Economy, the Attorney-General of the Federation, the Minister of Budget and National Planning, the Minister of State for Petroleum Resources, the Nigeria Revenue Service Chairman, and other key advisers. The committee will oversee coordination across upstream, midstream, and downstream petroleum operations and ensure timely remittance to the Federation Account. Mediaplusng.com reports that the committee will also manage a joint project team to integrate petroleum operations and improve operational efficiency across the sector.
This Executive Order marks a decisive step toward fiscal discipline, transparency, and enhanced accountability in Nigeria’s oil and gas sector. By streamlining revenue flows, eliminating duplicative structures, and ensuring direct federal remittances, the administration aims to strengthen the nation’s economy, boost investor confidence, and secure resources to address critical national priorities.
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