Dare Babalola
In a bid to increase revenue for the country’s development, President Bola Tinubu has signed an Executive Order to ensure oil and gas revenues are paid directly into the Federation Account.
The order, effective February 13, 2026, aims to end excessive deductions and structural distortions that have weakened remittances to the account.
In a statement issued on Wednesday, President Tinubu explained that the move is aimed at ensuring transparency, accountability, and compliance with the constitution.
“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account,” he said.
The president added that the development suffers when revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms.
With the Executive Order, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing and related contracts will now be paid directly into the Federation Account.
The additional 30 per cent management fee and the 30 per cent Frontier Exploration deduction will no longer hinder national revenue.
President Tinubu emphasized that the reform is about fairness and fiscal responsibility, saying “Oil and gas revenues must serve the Nigerian people first.”
He noted that the administration will strengthen national security, invest in education, expand healthcare, stabilise the economy, and advance energy transition.
The President also announced a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies that weaken national revenue.
An Implementation Committee was also established to oversee the effective implementation of the executive order.
Tinubu assured Nigerians that the era of duplicative deductions and fragmented oversight is over, saying “Nigeria can no longer afford leakage where there should be leadership.”
He reiterated his commitment to putting Nigeria first, thanking Nigerians for their trust in his administration.
