President Bola Ahmed Tinubu has issued a new executive order directing the Nigerian National Petroleum Company Limited (NNPC) to remit oil taxes and royalties directly to the Federation account, in a move aimed at increasing government revenue and improving transparency.
The directive also suspends the deduction of management fees previously retained by the national oil company before remitting funds to the Federation.
The decision is part of broader reforms by the Tinubu administration to strengthen Nigeria’s fiscal position and ensure that the country maximizes revenue from its oil and gas resources.
Under the new order, oil-related revenues due to the Federation will now be paid directly, reducing delays and eliminating intermediary deductions that previously reduced the amount reaching government coffers.
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Officials say the move is expected to improve accountability, boost monthly allocations to federal, state, and local governments, and enhance public finance stability.
Economic analysts believe the directive could significantly increase revenue for infrastructure, social services, and development projects nationwide.
The order underscores the administration’s commitment to reforming the oil sector, improving transparency, and ensuring that Nigeria fully benefits from its natural resources.
