Tinubu Signs Executive Order to Protect Oil and Gas Revenues

Abuja, Nigeria – President Bola Tinubu has signed an executive order aimed at safeguarding and maximizing Nigeria’s oil and gas revenues, curbing wasteful spending, and eliminating duplicative structures within the sector. The reforms are designed to redirect resources for the benefit of all Nigerians.

The order, signed on February 13, 2026, is anchored on Sections 5 and 44(3) of the Constitution, which vest ownership and control of all minerals, mineral oils, and natural gas in the Federal Government. It seeks to restore constitutional revenue entitlements to the Federal, State, and Local Governments that were disrupted by the Petroleum Industry Act (PIA) of 2021.

Under the PIA, substantial deductions — including management fees, investment retentions, and exploration funds — had reduced oil and gas revenue flows to the Federation Account. For example:

• NNPC Limited previously retained 30% of profit oil and gas as a management fee, plus an additional 20% for working capital and future investments.

• The company also retained 30% of profit oil and gas under the Frontier Exploration Fund.

• Gas flaring penalties, intended for environmental remediation under the Midstream and Downstream Gas Infrastructure Fund (MDGIF), were also diverted.

The executive order abolishes these overlapping deductions and mandates that all oil and gas revenues — including Royalty Oil, Tax Oil, Profit Oil, and Profit Gas — be remitted directly to the Federation Account. NNPC Limited will no longer collect the Frontier Exploration Fund or the 30% management fee on profit oil and gas revenues.

Similarly, payments of gas flare penalties into the MDGIF are suspended, and all proceeds are now directed to the Federation Account. Any spending from the MDGIF will follow strict public procurement laws.

The order also addresses structural concerns over NNPC Limited’s dual role as a commercial operator and concessionaire, seeking to reposition the company strictly as a commercial entity while safeguarding federal interests.

To ensure effective implementation, President Tinubu has set up a joint implementation committee comprising the Minister of Finance, Attorney-General of the Federation, Minister of Budget and National Planning, Minister of State for Petroleum Resources, and other key officials. The committee will coordinate and oversee the reforms and interface with oil and gas licensees and operators.

In addition to immediate reforms, the President confirmed that his administration will conduct a comprehensive review of the PIA, in consultation with stakeholders, to address fiscal and structural anomalies in the sector.

The executive order underscores the administration’s commitment to boosting federal revenues, enhancing transparency, and ensuring that oil and gas resources are leveraged for national development, including investments in security, education, healthcare, and energy transition initiatives.