Tinubu Orders Direct Remittance of Oil Revenue to Federation

On Wednesday, President Bola Ahmed Tinubu issued an order mandating the direct remittance of oil and gas revenue to the Federation Account. This directive aims to enhance revenue, curb wasteful spending, and eliminate structural duplications within the sector.

The order was signed pursuant to Section 5 of the Constitution of the Federal Republic of Nigeria and seeks to restore constitutional revenue entitlements across the three tiers of government. The 2021 Petroleum Industry Act (PIA) created a legal framework that has led to significant revenue losses due to various deductions.

Currently, NNPC Ltd retains 30% of oil revenue management fees, while oil and gas companies retain 20% of their profits. Tinubu's order will eliminate these unjustified management fees and ensure that funds are transferred directly to the Federation Account.

Additionally, the order suspends payments related to gas flare penalties and establishes a joint project team to oversee the integration of petroleum operations.