President Tinubu Signs EO For Direct Remittance Of Oil And Gas Revenues To Federation Account.

President Bola Tinubu has signed and gazetted an Executive Order, effective February 13, 2026, directing that oil and gas revenues due to the Federation , including Royalty Oil, Tax Oil, Profit Oil, Profit Gas and related receipts be remitted directly to the Federation Account...



The EO, issued pursuant to Section 5 and anchored on Section 44(3) of the Constitution, is intended to restore constitutional revenue entitlements for the federal, state and local governments that the Presidency says were eroded by the 2021 Petroleum Industry Act (PIA), to curb wasteful spending, eliminate duplicative structures, reduce revenue leakages and reposition NNPC Limited as a strictly commercial enterprise.

The order addresses specific PIA deductions that the Presidency describes as excessive and duplicative...

NNPC Limited will no longer collect or manage the 30% Frontier Exploration Fund and will no longer be entitled to the 30% management fee on Profit Oil and Profit Gas.

The EO also notes that NNPC Limited already retains 20% of profits for working capital and investments and that the additional 30% management fee and other layered deductions have substantially reduced net remittances to the Federation Account.

Under the EO, all operators and contractors of oil and gas assets held under production sharing, profit sharing and risk service contracts must remit government entitlements directly to the Federation Account from the EO date, and proceeds from gas-flaring penalties will be suspended from the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and paid into the Federation Account instead, with any MDGIF expenditure thereafter required to comply with extant public procurement laws and regulations.

The EO further highlights overlapping funds and fees (including the MDGIF and the Environmental Remediation Fund established under section 103 of the PIA) and seeks to eliminate redundant provisions that divert more than two‑thirds of potential remittances according to the Presidency.

To manage the transition and integrated petroleum operations, the President approved the constitution of a joint project team with the Commission serving as the interface for combined upstream–midstream operations, and established an Implementation Committee to oversee coordinated execution of the EO; committee members include the Minister of Finance and Coordinating Minister of the Economy, the Attorney‑General of the Federation and Minister of Justice, the Minister of Budget and National Planning, the Minister of State Petroleum Resources (Oil), the Chairman of the Nigeria Revenue Service, a representative of the Ministry of Justice, the Special Adviser to the President on Energy and the Director‑General of the Budget Office of the Federation (which will provide secretariat support).

The Presidency says the measures are urgent given their implications for national budgeting, debt sustainability and economic stability, and announced a comprehensive review of the PIA in consultation with stakeholders to address identified fiscal and structural anomalies; practical issues to watch include the legal and contractual mechanics for existing production sharing and related contracts, potential judicial challenges, the short‑term fiscal impact on NNPC Limited’s operations and investment plans, and how the PIA review will reconcile statutory provisions with the Executive Order.