Tinubu's Order Threatens Lake Chad Oil Exploration

On February 13, 2026, President Bola Ahmed Tinubu signed an Executive Order that mandates the direct remittance of oil and gas revenues to Nigeria's federal account, eliminating the long-standing revenue retention mechanism established under the Petroleum Industry Act (PIA) of 2021. This order is expected to affect companies' 20 percent profit share, which covers work capital for future investments.

The order aims to resolve overlapping provisions across relevant laws and regulatory instruments, but it may also stall exploration efforts in the northern Nigeria regions, particularly the Lake Chad Basin and Kolmani River project. The Nigerian National Petroleum Company Limited (NNPC Ltd) has expressed concerns that the removal of the 30 percent deduction for the government will undermine fiscal discipline and slow down exploration activities.

The Lake Chad Basin has been identified as a significant hydrocarbon province, with historical investments of N27 billion prior to 2013, and the previous administration had planned to resume drilling in the area.