Tinubu amends petroleum industry act, mandates oil revenue remittance to FAAC

2026-02-18 - 19:26

President Bola Tinubu has signed an executive order mandating the direct remittance of oil and gas revenues to the Federation Account Allocation Committee (FAAC), in a move aimed at curbing revenue leakages and boosting government earnings. Bayo Onanuga disclosed the development on Wednesday, saying the directive will safeguard oil and gas revenues, eliminate duplicative structures and restore constitutional allocations to federal, state and local governments. The presidency said the order addresses revenue deductions introduced under the Petroleum Industry Act, which allowed NNPC Limited to retain 30 per cent of profit oil and gas as a management fee, 20 per cent of profits for working capital and investments, and another 30 per cent for the Frontier Exploration Fund. Under the new order, NNPC will no longer collect the 30 per cent Frontier Exploration Fund or the 30 per cent management fee. All royalty oil, tax oil, profit oil and profit gas due to the federation must now be paid directly into the federation account from February 13, 2026. Tinubu also suspended payments of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, directing that proceeds be remitted to the federation account. The president said the reforms are urgent for national budgeting, debt sustainability and economic stability, and confirmed a comprehensive review of the PIA.