By Adeyemi David
President Bola Tinubu has defended the sweeping executive order he signed on February 13, 2026, restructuring the financial architecture of Nigeria’s oil and gas sector, declaring that the move was aimed at ending decades of structural leakages that have deprived Nigerians of the full benefits of the nation’s hydrocarbon wealth.
In a personal address to the nation, Tinubu said Presidential Executive Order No. 9 of 2026, titled Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026, was designed to restore constitutional compliance to a revenue system he described as weakened by “excessive deductions, overlapping funds, and structural distortions.”
“For too long, revenues meant for federal, state, and local governments have been trapped in layers of charges and retention mechanisms,” the president said. “Development suffers. That must end.”
The order, which has been gazetted, marks the most direct presidential intervention in the financial operations of NNPC Limited since its transition into a commercial entity under the Petroleum Industry Act.
Key Provisions
At the core of Executive Order 9 is a directive mandating that all government entitlements from Nigeria’s oil and gas operations including Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government shares under Production Sharing Contracts be remitted directly into the Federation Account.
This effectively bypasses existing retention structures within NNPC Limited.
Most notably, the order abolishes two controversial deductions. NNPC Limited will no longer retain a 30 per cent management fee on Profit Oil and Profit Gas.
Additionally, the company will cease managing a separate 30 per cent Frontier Exploration Fund drawn from profit oil and gas revenues. Both revenue streams are to be paid directly into the Federation Account for distribution among the federal, state, and local governments.
The presidency also announced the formation of a joint project team to oversee integrated upstream and midstream operations, with regulatory agencies serving as the primary interface with license holders, a structural adjustment that signals a recalibration of NNPC’s operational mandate.
To ensure compliance, Tinubu approved the creation of a high-level implementation committee comprising the Minister of Finance, Attorney-General of the Federation, Minister of Budget and Economic Planning, Minister of State for Petroleum, Chairman of the Nigeria Revenue Service, Director-General of the Budget Office, and other senior officials.
The committee is tasked with coordinating execution of the directive across relevant government agencies.
PIA review in view
Beyond the immediate changes, the president signalled plans for a comprehensive review of the Petroleum Industry Act 2021, citing the need to address “structural and fiscal anomalies that weaken national revenue.”
The PIA, which took years to pass and was widely regarded as a landmark reform upon its enactment, has faced criticism from some stakeholders who argue that certain provisions have reduced government revenue in practice.
A formal presidential review is expected to reignite debate over the balance between investor incentives and national fiscal interests.
Fiscal Pressure
The executive order comes amid mounting pressure on government finances and persistent tensions over Federation Account allocations. Several state and local governments have argued that current disbursements fall short of what Nigeria’s oil production levels should generate.
By mandating direct remittance of oil and gas revenues, the order represents an implicit acknowledgement that the existing financial structure within NNPC Limited has contributed to revenue shortfalls.
Framing the move as a constitutional obligation, Tinubu said, “Every legitimate naira due to the Federation must be protected,” adding that NNPC Limited must henceforth operate strictly as a commercial enterprise in line with the law.
