Tinubu's Executive Order Redirects Oil Revenue to Federal Account

On Wednesday night, President Bola Ahmed Tinubu signed an executive order aimed at redirecting Nigeria's oil and gas revenue directly to the federal account, effective February 13, 2026. This order seeks to address issues such as excessive deductions and overlapping fund structures that have distorted the oil and gas sector and weakened revenue remittance to the federal account.

The executive order includes provisions to end the Nigerian National Petroleum Company Limited's (NNPCL) 30% management fee on profit oil and profit gas product share contracts. It also abolishes the NNPC's 30% retention of the frontier exploration fund, ensuring that funds are transferred directly to the federal account.

Additionally, the order suspends payments for gas flare penalties, with future penalties directed to the federal account. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are tasked with implementing these reforms, coordinated by a joint project team led by the Minister of Finance.