By Danjuma Amodu February 18, 2026
President Bola Tinubu has signed an Executive Order to enhance oil and gas revenues for the Federation, curb wasteful spending, and redirect resources for the benefit of Nigerians, according to a press statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
The order, anchored on Section 44(3) of the Constitution, seeks to restore revenue entitlements of the Federal, State, and Local Governments affected by the Petroleum Industry Act (PIA) of 2021.
The President’s directive addresses issues with NNPC Limited’s deductions, including a 30% management fee and 30% Frontier Exploration Fund, deemed unjustified and excessive. NNPC Limited will transfer 30% profit from oil and gas to the Federation Account and no longer retain the 30% management fee on profit oil and profit gas revenues.
The Gas Flare Penalty payments into the Midstream and Downstream Gas Infrastructure Fund have also been suspended, with proceeds from penalties now payable into the Federation Account. All expenditures from the fund will be conducted in line with extant public procurement laws, policies, and regulations.
A joint project team has been approved to execute integrated petroleum operations, with the Commission serving as the interface with licensees and lessees. The President has also established an implementation committee to oversee the order’s execution, comprising key ministers and officials.
The committee’s objective is to ensure effective, coordinated implementation of the executive order, addressing overlapping provisions and eliminating unjustified deductions. The President’s administration plans to review the PIA to address identified fiscal and structural anomalies, with implications for national budgeting, debt sustainability, economic stability, and the overall well-being of Nigerians.
The Executive Order takes effect from February 13, 2026, and is expected to significantly impact the nation’s revenue streams.
The implementation committee will be responsible for overseeing the effective and coordinated implementation of the executive order. The members of the committee include the Minister of Finance and Coordinating Minister of the Economy, the Attorney-General of the Federation and Minister of Justice, the Minister of Budget and National Planning, and the Minister of State, Petroleum Resources (Oil).
Other members of the Committee are the Chairman, Nigeria Revenue Service; a Representative of the Ministry of Justice; the Special Adviser to the President on Energy; and the Director-General, Budget Office of the Federation. The latter will provide a secretariat to the committee.
According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, the reforms are of urgent national importance, given their implications for national budgeting, debt sustainability, economic stability, and the overall well-being of Nigerians.
The Presidential Executive Order has been officially gazetted, and NNPC Limited will ensure that the 30% profit from oil and gas from production sharing, profit sharing, and risk service contracts currently earmarked for the frontier exploration fund is henceforth transferred to the Federation Account.
All operators/contractors of oil and gas assets held under a production sharing contract shall, from the date of the Executive Order, pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other interest howsoever described which is due to the government of the federation directly to the Federation Account.
The Commission will serve as the interface with licensees and lessees in respect of integrated operations where upstream and midstream petroleum operations are fully combined.
President Tinubu noted that his administration will undertake a comprehensive review of the Petroleum Industry Act in consultation with relevant stakeholders to address identified fiscal and structural anomalies.
The review aims to address the challenges facing the oil and gas industry and ensure that the country’s resources are utilized for the benefit of all Nigerians.
The Executive Order is expected to have a significant impact on the country’s revenue streams and improve the overall economic stability of the nation.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated that the reforms are crucial for national budgeting, debt sustainability, and the well-being of Nigerians.
The order is effective from February 13, 2026, and all relevant parties are expected to comply with its provisions.
