The Federal Government has directed that all oil and gas revenues be fully remitted into the Federation Account, following President Bola Tinubu’s Executive Order on petroleum revenue management.
The move effectively ends all off-budget deductions and administrative retentions previously allowed under various arrangements.
The directive affected key agencies in the petroleum sector, including the Nigerian National Petroleum Company Limited (NNPC Limited), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
These bodies have been instructed to provide complete financial records and to cooperate fully with the retrospective review being commissioned by the government.
Immediate measures under the order include the cessation of all deductions, such as the 30 per cent allocation to the Frontier Exploration Fund (FEF) and the 30 per cent management fee previously retained by NNPC on profit oil and gas revenues.
Payments into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) from gas flare penalties have also been suspended, along with any other off-budget allocations inconsistent with the Executive Order.
All petroleum-related revenues, including profit oil, profit gas, royalty oil, tax oil, and gas flare penalties, are to be remitted directly into a Sub-Federation Account, which will be managed by the Office of the Accountant-General of the Federation.
The government has commissioned a comprehensive audit to examine revenue management since inception.
The review will cover the Frontier Exploration Fund, including total collections, expenditures, commitments, current balances, and investments; the Midstream and Downstream Gas Infrastructure Fund, including gas flare penalties collected, transfers, utilisation, and compliance with procurement regulations; and NNPC’s 30 per cent management fees, including deductions made, retained funds, and outstanding balances owed to the Federation.
Agencies and entities involved, including NNPC, NUPRC, NMDPRA, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), the Nigerian Navy Ship (NRS), oil contractors, and operators, are required to grant unrestricted access to audit teams and submit weekly remittance reports to the Minister of State for Finance, Dr. Doris Uzoka-Anite.
Any outstanding sums discovered must be immediately returned to the Sub-Federation Account.
Failure to comply will be treated as a violation of the Executive Order and constitutional fiscal provisions.
Observers noted that the directive coincided with the renewed strategic alliance between NNPC Limited and Dangote Refinery, a partnership aimed at strengthening Nigeria’s energy security.
Analysts said the government’s move reflects a broader commitment to transparency, accountability, and full compliance with Section 162 of the Constitution, which governs the remittance of Federation revenues.
