Finance Overdrive: Tinubu Orders NNPCL Review, Eyes 7% Annual Growth by 2027

President Bola Ahmed Tinubu has ordered a comprehensive review of revenue retention and deduction practices across major government revenue-generating agencies, including the Nigerian National Petroleum Company Limited (NNPCL), in a bid to boost national savings, improve spending efficiency, and stimulate economic growth.

The directive, announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, extends to the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).

According to Edun, the reassessment will focus on specific NNPCL deductions such as the 30 per cent management fee and the 30 per cent frontier exploration deduction provided for under the Petroleum Industry Act (PIA). The Economic Management Team, led by the finance minister, has been tasked with presenting actionable recommendations to the Federal Executive Council (FEC).

President Tinubu described the move as part of his administration’s broader reform agenda to eliminate economic distortions, strengthen resilience, and boost investor confidence. He reiterated Nigeria’s ambition to achieve a $1 trillion economy by 2030, targeting consistent annual growth of at least 7 per cent from 2027.

The President cited the July 2025 International Monetary Fund (IMF) Article IV report, which endorsed Nigeria’s current policy direction and emphasised the importance of investment-driven growth. He also highlighted the Renewed Hope Ward Development Programme, designed to support economically active citizens across Nigeria’s 8,809 wards through grassroots poverty-reduction initiatives in partnership with state and local governments as well as private stakeholders.

Tinubu stressed that with public investment currently at only 5 per cent of GDP—mainly due to low savings—there is a pressing need to maximise every available resource, especially in light of global liquidity constraints.

The finance minister noted that Nigeria’s macroeconomic indicators are showing signs of improvement, including a more stable exchange rate, easing inflation, increasing revenues, and a sustainable debt-to-GDP ratio.

At the FEC meeting, Edun also presented two key proposals: securing $125 million in financing from the Islamic Development Bank for road infrastructure in Abia State, and refinancing ₦4 trillion in outstanding electricity sector obligations, with the initial phase to be completed within the next month. The Debt Management Office and other agencies will coordinate the debt resolution process.