Business Briefings
Tinubu Suspends NNPCL Fees, Directs Oil Revenues to Federation Account
President Bola Tinubu has issued an Executive Order halting the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPCL), while mandating that all oil and gas revenues be fully remitted to the Federation Account.
According to Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, the move is designed to ensure that revenue flows comply with constitutional requirements, prevent leakages, and enhance fiscal transparency, especially as Federation Account inflows have been under pressure despite improved production and favourable market conditions.
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“Last week, President Bola Tinubu signed an Executive Order to realign oil and gas revenue flows with constitutional provisions. The measure is intended to strengthen fiscal transparency, clarify regulatory responsibilities, and boost revenues accruing to the Federation from the sector,” the ministry explained.
The Order suspends NNPCL’s fee collections, stops gas flare penalty payments from going into the Midstream Gas Infrastructure Fund, clarifies roles between the Nigerian Upstream Petroleum Regulatory Commission and the NMDPRA, and establishes an inter-agency committee led by the Finance Minister to oversee implementation. The directive takes immediate effect as a temporary measure while legislative reforms are considered.
