Tinubu Reclaims Trillions for Nigeria as New Executive Order Ends NNPCL’s Grip on Oil Revenues
In a decisive move to stabilize the national economy and bolster the Federation Account, President Bola Tinubu has signed a landmark Executive Order stripping the Nigerian National Petroleum Company Limited (NNPCL) of its power to retain several multi-billion naira levies and management fees. The directive, signed on February 13, 2026, marks a aggressive shift in how Nigeria manages its primary source of wealth, effectively ending years of “unjustified” revenue deductions permitted under the 2021 Petroleum Industry Act (PIA).
The President’s intervention targets the structural leakages that have seen over two-thirds of potential oil remittances diverted before reaching the federal, state, and local governments. Central to this reform is the immediate abolition of the 30% management fee previously collected by NNPCL on profit oil and gas from production sharing contracts. The administration noted that since NNPCL already retains 20% of its profits for working capital, the additional management fee was redundant and detrimental to the national purse.
Furthermore, the Executive Order halts the controversial Frontier Exploration Fund. NNPCL will no longer manage the 30% of profit oil and gas earmarked for speculative exploration a fund the government warned was accumulating idle cash and encouraging inefficient spending. These funds, along with proceeds from gas flaring penalties previously funneled into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), will now be paid directly into the Federation Account to fund urgent priorities like security, healthcare, and education.
President Tinubu, acting under Section 5 of the Constitution, emphasized that these reforms are a matter of “urgent national importance” for debt sustainability and economic stability. By bypassing NNPCL’s previous role as a middleman, the Order mandates that all oil and gas operators pay royalties, taxes, and profits directly to the Federation. This move aims to reposition NNPCL strictly as a commercial entity, removing its ability to influence operating costs while acting as a concessionaire a conflict of interest the Presidency believes has distorted the market.
To ensure the new rules are strictly followed, a high-powered Implementation Committee has been established. Led by the Minister of Finance and Coordinating Minister of the Economy, the team includes the Attorney-General, the Minister of Budget and National Planning, and the Minister of State for Petroleum Resources. This committee is tasked with overseeing the transition and preparing for a comprehensive legislative review of the PIA to permanently fix the “fiscal anomalies” that have drained Nigeria’s coffers for years.
