President Bola Ahmed Tinubu has signed an Executive Order directing the direct remittance of oil and gas revenues to the Federation Account.
The Order aims to protect national revenue, curb waste, and eliminate duplicative structures in the oil and gas sector.
President Tinubu issued the directive under Section 5 of the 1999 Constitution, as amended.
The Order is also anchored on Section 44(3), which vests ownership of mineral resources in the Federal Government.
The President said the move will stop unjustified deductions that reduce funds due to the Federation Account.
He explained that improved revenue flow will support national priorities across federal, state, and local governments.
Under the Order, NNPC Limited will no longer retain the 30 percent Frontier Exploration Fund.
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Instead, profits from oil and gas contracts previously assigned to the fund will go directly to the Federation Account.
All operators under Production Sharing Contracts must also remit government entitlements directly to the Account.
These include royalty oil, tax oil, profit oil, profit gas, and related revenues.
The Order further suspends payments of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund.
Going forward, all gas flare penalties must be paid directly into the Federation Account.
The directive takes immediate effect and reinforces transparency, accountability, and fiscal discipline in the sector.
