President Bola Tinubu has taken a major step to safeguard and enhance Nigeria’s oil and gas revenues by signing an Executive Order aimed at stopping wasteful spending, eliminating overlapping structures in the sector, and ensuring that resources are properly redirected for the benefit of Nigerians.

Under the new order, NNPC Limited will no longer collect the 30% Frontier Exploration Fund nor the 30% management fee on profit oil and profit gas. Previously, these deductions meant that a significant portion of the Federation’s oil revenue was being held back, despite existing funds being sufficient to cover NNPC’s operational needs. From now on, all payments — including royalties, taxes, profit oil, profit gas, and even gas flare penalties — will go directly to the Federation Account, ensuring that federal, state, and local governments receive their rightful share.

The Executive Order addresses concerns over the PIA’s structure, which had created multiple overlapping deductions and allowed NNPC to influence costs while functioning as a commercial entity. By removing duplicative fees and funds, the government aims to increase transparency, reduce leakages, and reposition NNPC strictly as a commercial operator.

President Tinubu emphasized that the reforms are urgently needed to support national budgeting, debt sustainability, economic stability, and social development, particularly in areas like security, education, healthcare, and energy transition projects. He also approved a review of the Petroleum Industry Act (PIA) in consultation with stakeholders to address structural and fiscal anomalies.

To ensure proper implementation, a committee composed of ministers, NNPC representatives, the Budget Office, and the Nigeria Revenue Service will oversee execution. The reforms take effect from February 13, 2026, marking a new era of accountability, efficiency, and fairness in Nigeria’s oil and gas sector.

This Executive Order is more than a policy update — it’s a clear signal that Nigeria’s natural resources will now be managed with greater transparency, efficiency, and benefit to the people.