Tinubu Orders Direct Oil Revenue Payment to Federation Account
President Bola Tinubu has signed an executive order directing that all oil and gas revenues be paid directly into the Federation Account. The move is aimed at blocking revenue leakages and increasing government earnings.
The presidency said the new order will protect national revenue and restore proper allocation to federal, state and local governments. It also removes certain deductions previously allowed under the Petroleum Industry Act.
Under the directive, NNPC Limited will no longer retain funds for the Frontier Exploration Fund or management fees. All royalty oil, tax oil, profit oil and profit gas must now be paid straight into the federation account from February 13, 2026.
Tinubu also stopped gas flare penalty payments to a separate gas infrastructure fund, ordering that the money be sent to the federation account instead. The president said the reform is necessary for budgeting, debt control and economic stability.
