\n\nPresident Bola Ahmed Tinubu has signed an Executive Order that significantly reduces the revenue share retained by the Nigerian National Petroleum Company Limited (NNPC Ltd) and mandates that a larger portion of earnings be remitted directly into the Federation Account. The move is part of the federal government’s broader effort to strengthen fiscal transparency, boost public finances, and ensure that oil revenues are fully accessible for national budgeting and development priorities.
According to details of the order, deductions previously allowed for the cost of governance and operational expenses by NNPC Ltd will be curtailed, with more funds now channelled straight to the Federation Account for allocation to states and the federal government. The policy has drawn mixed reactions: proponents say it will improve revenue availability for infrastructure and social services, while critics warn about possible impacts on NNPC Ltd’s operations in a challenging global oil market. The order aligns with ongoing reforms in the oil and gas sector and is expected to reshape how Nigeria manages its most significant revenue streams.
