By Abubakar Yunusa
President Bola Tinubu has stripped NNPC Limited of key revenue deduction powers, ordering that oil and gas earnings be paid directly into the Federation Account Allocation Committee.
The directive is contained in an executive order signed on February 13, 2026, and officially gazetted, the Presidency said on Wednesday.
Presidential spokesman, Bayo Onanuga, said the order is aimed at safeguarding federation revenues, curbing wasteful spending and dismantling duplicative structures created under the Petroleum Industry Act.
Under the order, NNPC will no longer retain the 30 per cent management fee on profit oil and profit gas from production sharing, profit sharing and risk service contracts.
Onanuga said the national oil company is also barred from collecting and managing the 30 per cent Frontier Exploration Fund, adding that the funds must now be transferred directly to the federation account.
“All operators and contractors are to pay royalty oil, tax oil, profit oil and gas, and all other dues directly into the federation account,” he said.
The President also suspended the payment of gas flaring penalties into the Midstream and Downstream Gas Infrastructure Fund, directing that such proceeds be remitted to the federation account.
Onanuga said Tinubu acted under Section 5 and Section 44(3) of the Constitution, which vest ownership and control of mineral resources in the Federal Government.
He added that the executive order seeks to restore revenue entitlements of the federal, state and local governments, which he said were eroded by multiple deductions introduced by the PIA in 2021.
According to the Presidency, the deductions currently divert more than two-thirds of potential oil revenues, contributing to declining net inflows and weakening national finances.
Tinubu also approved the setting up of an implementation committee and a joint project team to oversee integrated petroleum operations and ensure full enforcement of the order.
The President said the reforms are urgent, citing their impact on budgeting, debt sustainability, economic stability and the welfare of Nigerians, and confirmed plans for a comprehensive review of the PIA with stakeholders.
