Title: Tinubu Signs Executive Order Mandating Direct Remittance of Oil, Gas Revenues to Federation Account Date Published: 18 February 2026 Description: President Bola Tinubu has signed an Executive Order directing the direct remittance of oil and gas revenues to the Federation Account, a move aimed at boosting national earnings, curbing leakages and eliminating duplicative deductions in the petroleum sector.The Executive Order, signed on February 13, 2026, was issued pursuant to Section 5 of the 1999 Constitution (as amended) and anchored on Section 44(3), which vests ownership and control of all mineral resources in the Government of the Federation.According a State House press release signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the directive seeks to restore the constitutional revenue entitlements of the federal, state and local governments, which were diminished following the implementation of the Petroleum Industry Act (PIA) in 2021 through multiple deductions, charges and fees.Under the existing framework, NNPC Limited retained 30 per cent of profit oil and profit gas as a management fee on production sharing, profit sharing and risk service contracts, in addition to keeping 20 per cent of its profits for working capital and future investments.The Federal Government said the additional 30 per cent management fee was unjustified, noting that retained earnings were already sufficient to support the company’s operational responsibilities.NNPC Limited also retained another 30 per cent of profit oil and profit gas as the Frontier Exploration Fund, a provision the Presidency said had led to excessive idle funds and inefficient spending at a time when resources were urgently needed for security, education, healthcare and energy transition initiatives.The Executive Order also addressed the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which is financed through gas flaring penalties. The Presidency noted that the PIA already provides for an Environmental Remediation Fund, making the MDGIF structure duplicative.“All these deductions far exceed global norms and effectively divert more than two-thirds of potential remittances to the Federation Account,” the statement said, adding that declining net oil revenues were largely due to such deductions and fragmented oversight.Under the new directive, NNPC Limited will no longer collect or manage the 30 per cent Frontier Exploration Fund, while the earmarked funds from profit oil and gas will now be transferred directly to the Federation Account.The company is also no longer entitled to the 30 per cent management fee on profit oil and profit gas revenues.In addition, all operators and contractors under production sharing contracts are required, with effect from February 13, 2026, to pay royalty oil, tax oil, profit oil, profit gas and all other government entitlements directly into the Federation Account.President Tinubu also approved the suspension of payments of gas flare penalties into the MDGIF, directing that such proceeds be paid into the Federation Account, with all MDGIF expenditures to comply with extant public procurement laws.The Executive Order further introduces measures to reposition NNPC Limited strictly as a commercial enterprise, while safeguarding the Federation’s interests, and addresses concerns over its continued role as a concessionaire under production sharing arrangements.To ensure effective implementation, the President approved the constitution of an Implementation Committee comprising the Minister of Finance and Coordinating Minister of the Economy, the Attorney-General of the Federation and Minister of Justice, the Minister of Budget and National Planning, the Minister of State for Petroleum Resources (Oil), the Chairman of the Nigeria Revenue Service, among others. The Budget Office of the Federation will serve as the committee’s secretariat.President Tinubu said the reforms were of urgent national importance due to their implications for budgeting, debt sustainability, economic stability and the overall well-being of Nigerians, adding that his administration would undertake a comprehensive review of the PIA in consultation with stakeholders. Attached Images: 34f7bd128585ae466b30b6c05ed2ec9bf707a74aabb07e2cfc83c0f070cc25e5.jpg, 57b6a8a691969193e824f61f34e9ece7ddfba2194acc3652cb416bd8162ef46a.jpg, d42b6cd7d885d6dab98f2888cda44ebcfa1978cadb3ad6acb7e461cf039106fb.jpg Attached Video: None