President Bola Tinubu has signed a new Executive Order introducing sweeping changes to the oil and gas industry, redirecting significant revenues previously managed by the Nigerian National Petroleum Company (NNPC) Limited directly to the Federation Account .
The Executive Order, effective from February 13, 2026, strips NNPC Limited of its 30% management fee on Profit Oil and Profit Gas, as well as its control over the 30% Frontier Exploration Fund derived from profit oil and gas. Both revenue streams will now flow directly to the Federation Account .
Under the new directive, all oil and gas operators are now required to remit Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other government entitlements directly to the Federation Account, bypassing NNPC’s previous intermediary role .
To ensure seamless implementation, the Order mandates the formation of a joint project team to manage integrated upstream-midstream operations, with regulators serving as the interface between the government and license holders .
A high-level committee has been established to oversee execution of the directive. Members include the Minister of Finance, Attorney-General, Minister of Budget, Minister of State for Petroleum, Chairman of the Nigeria Revenue Service, Director-General of the Budget Office, and other key officials .
In a significant development, the President signaled a broader review of the Petroleum Industry Act (PIA) 2021 in consultation with stakeholders to address fiscal and structural issues affecting the sector .
Industry analysts describe the Executive Order as a transformative move that enhances transparency, boosts Federation Account revenues, and redefines NNPC’s operational landscape .
—
Facebook Headline:
🛢️ BREAKING: Tinubu Signs Executive Order Overhauling Oil Sector — NNPC loses 30% management fee, Frontier Exploration Fund now goes to Federation Account. Full details 👇
Disclaimer:
© 2026 CDA News Nigeria. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Privacy Policy | Contact Us
That is a good development.