Tinubu Signs Game-Changing Executive Order On Nigeria’s Oil Revenue – Here’s What You Need To Know

President Bola Tinubu has signed an executive order directing that all oil and gas revenues in Nigeria be remitted directly to the federation account, effectively bypassing previous deductions and retentions allowed under the Petroleum Industry Act of 2021.

Tagged the “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026,” the order takes effect from February 13, 2026, and has already been officially gazetted. According to Ireporter Online, the measure aims to eliminate excessive deductions, overlapping funds, and structural inefficiencies in the oil and gas sector that have historically weakened remittances to the federation account.

Under the new directives, the Nigerian National Petroleum Company Limited (NNPCL) will no longer collect a 30% management fee on Profit Oil and Profit Gas from Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts, as existing profit retention already covers operational costs. The order also abolishes NNPC’s 30% retention for the Frontier Exploration Fund, mandating that all such funds be transferred directly to the federation account.

Operators and contractors under production sharing arrangements are now required to pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and all other government entitlements directly to the federation account starting from February 13. Gas flare penalties will no longer be paid into the Midstream and Downstream Gas Infrastructure Fund (MDGIF); future penalties will instead go directly to the federation account, while existing MDGIF expenditures must comply fully with public procurement laws.

The order also clarifies responsibilities between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure streamlined regulation.

To oversee implementation, President Tinubu has approved the creation of a joint project team with NUPRC as the central interface for integrated upstream and midstream operations. An implementation committee, chaired by the Minister of Finance and Coordinating Minister of the Economy, and including the Attorney-General, Minister of Budget and National Planning, Minister of State for Petroleum Resources, Chairman of the Federal Inland Revenue Service, Special Adviser to the President on Energy, and the Director-General of the Budget Office, has also been constituted.