Nigeria's President Tinubu moves to end oil revenue ‘leakages’ with new executive order
Nigeria’s President Bola Ahmed Tinubu has signed a new executive order aimed at stopping what he described as longstanding “leakages” in the country’s oil and gas revenue system.
In a statement posted on X, Tinubu said the order, which took effect on February 13, 2026, is designed to ensure that oil revenues due to the Federation Account are paid directly and in full, without excessive deductions.
“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account,” the president wrote. “When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end, he added.”
The directive, officially titled Order 9 of 2026 (Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026), has now been gazetted.
Under the new order, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas and other government entitlements under production sharing and related contracts will be paid directly into the Federation Account. The administration has also scrapped the additional 30 percent management fee and the 30 percent Frontier Exploration deduction that previously reduced remittances.
Tinubu said the objective of the reform is to improve transparency, accountability and constitutional compliance in the management of oil revenues.
“Oil and gas revenues must serve the Nigerian people first and this reform is about fairness and fiscal responsibility,” he said.
The president added that NNPC Limited will now operate strictly as a commercial enterprise, as provided for under the Petroleum Industry Act, ending what he called “duplicative deductions and fragmented oversight.”
Tinubu also announced a comprehensive review of the Petroleum Industry Act to address structural and fiscal weaknesses in the sector. An implementation committee has been set up to oversee and coordinate the rollout of the new order.
This story is written and edited by the Global South World team, you can contact us here.
