Tinubu Directs All Oil, Gas Funds to Federation

President Bola Tinubu has signed a presidential executive order directing that all revenues from oil and gas operations, including royalties, taxes, profit oil, and profit gas, be paid directly to the Federation Account.

This was confirmed in a statement released on Wednesday by Bayo Onanuga, the President’s Special Advisor on Information and Strategy.

Onanuga said the order aims “to safeguard and enhance oil and gas revenues for the Federation, curb wasteful spending, eliminate duplicative structures in this critical sector of the national economy, and redirect resources for the benefit of the Nigerian people.”

The order, which took effect on February 13, 2026, ends NNPC Limited’s collection and management of certain petroleum funds, including the 30% Frontier Exploration Fund and the 30% management fee on profit oil and gas.

Onanuga explained, “NNPC Limited retains 30 per cent of the Federation’s oil revenues as a management fee on Profit Oil and Profit Gas derived from Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts.”

He also noted that “all operators/contractors of oil and gas assets held under a production sharing contract shall, from the date of the Executive Order, which is February 13, 2026, pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other interest howsoever described which is due to the government of the federation directly to the Federation Account.”

Onanuga said the order further suspends payments of the Gas Flare Penalty into the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

“The Commission shall, from the date of the Executive Order, pay proceeds from all penalties imposed on operators for flaring gas into the Federation Account and cease payment of such proceeds into the Midstream and Downstream Gas Infrastructure Fund (MDGIF). All expenditure from the MDGIF shall be conducted in line with extant public procurement laws, policies and regulations,” he said.

He explained that the Executive Order is designed to enhance transparency and curb leakages.

“The Executive Order, therefore, introduces immediate measures to curb leakages, enhance transparency, eliminate duplicative structures, and reposition NNPC Limited strictly as a commercial enterprise, while safeguarding the Federation’s interests,” Onanuga said.

Tinubu has also approved the formation of an implementation committee, which Onanuga said includes “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 and the Minister of State, Petroleum Resources (Oil).

“Other members of the Committee are the Chairman, Nigeria Revenue Service; a Representative of the Ministry of Justice; the Special Adviser to the President on Energy; and the Director-General, Budget Office of the Federation. The latter will provide a secretariat to the committee.”

Onanuga added that “in rolling out the order, the President affirmed that the reforms are of urgent national importance, given their implications for national budgeting, debt sustainability, economic stability, and the overall well-being of Nigerians.”