Tinubu Signs EO to Redirect Oil Revenue, Eliminate Deductions
President Bola Tinubu signed an executive order to safeguard Nigeria's oil and gas revenues by eliminating unjustified deductions and duplicative structures. The directive, effective February 13, 2026, removes NNPC Limited's 30% management fee on profit oil and profit gas, which had been retained under the Petroleum Industry Act (PIA). This fee, combined with NNPC's 30% Frontier Exploration Fund allocation, diverted over two-thirds of potential Federation Account revenues. The order also halts payments from gas flaring penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), redirecting these proceeds to the Federation Account instead. NNPC will no longer collect the Frontier Exploration Fund, ensuring all oil and gas revenues from production sharing contracts go directly to the federal account. The reforms aim to restore constitutional revenue entitlements for federal, state, and local governments, addressing Nigeria's declining net oil revenue inflows. A joint project team and Implementation Committee, including Finance, Justice, and Energy ministers, will oversee execution. The EO targets NNPC's dual role as concessionaire and commercial operator, eliminating competitive distortions while prioritizing national priorities like security and energy transition.