Tinubu Signs Order for Direct Oil Revenue Remittance

On October 24, 2023, President Bola Tinubu issued an executive order focused on the direct remittance of oil revenues to the Federation Account. This order aims to safeguard and enhance oil and gas revenue while addressing wasteful spending and eliminating duplicative structures within the sector.

The executive order is based on Section 5 of the Constitution of the Federal Republic of Nigeria and seeks to restore revenue entitlements to federal, state, and local governments that were affected by the 2021 Petroleum Industry Act (PIA). The PIA created a legal framework that allowed the Nigerian National Petroleum Corporation (NNPC) to retain 30% of oil revenue as a management fee, which has been criticized as unjustifiable.

The order also aims to resolve issues related to overlapping provisions in the PIA and enhance transparency in revenue management. It introduces immediate measures to curb revenue leakages and ensure that funds are directed towards national priorities, including security, education, and healthcare.