Tinubu Orders Reforms to Boost Transparency in Oil Revenue Remittances

President Bola Tinubu has issued an Executive Order aimed at tightening oversight of Nigeria’s oil and gas earnings and ensuring that revenues due to the Federation are fully accounted for.

The directive seeks to reduce revenue leakages, remove overlapping financial structures, and strengthen remittance flows to the Federation Account.

Officials said the order draws authority from constitutional provisions that place ownership of mineral resources in the Federation and require all proceeds from their exploitation to be centrally paid and distributed.

As part of the reforms, deductions previously retained by the Nigerian National Petroleum Company Limited—including certain management fees and frontier exploration allocations—are to be discontinued, with proceeds redirected to the Federation Account.

Payments linked to gas-flare penalties will also be routed directly into the national revenue pool rather than sector-specific funds.

Authorities said the move is intended to improve fiscal discipline, boost public revenue, and ensure that petroleum income contributes more directly to national development.

An inter-agency committee has been constituted to supervise implementation, while a broader legislative review of petroleum sector arrangements is expected to follow.