The recent Executive Order signed by President Bola Tinubu mandates that various oil and gas revenues, including royalty oil, tax oil, and profit gas, be paid directly into the Federation Account. This change is projected to increase allocations by approximately N14.57tn, based on 2025 revenue forecasts. Key alterations include the cessation of the Nigerian National Petroleum Company's (NNPC) collection of certain fees, including the 30% Frontier Exploration Fund and management fees on profit oil. The directive aims to enhance revenue remittances and ensure these funds serve federal, state, and local governments effectively, promoting fiscal responsibility and addressing structural issues in the oil sector. Implementation began in January 2026, with immediate effects expected on revenue allocations. Tinubu emphasized the necessity for transparency in revenue management to support national development.
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