Tinubu Orders All Oil and Gas Revenues Paid Directly Into Federation Account

President Bola Tinubu has introduced a major reform in the management of Nigeria’s oil and gas revenues, directing that all proceeds be deposited straight into the Federation Account. The move ends previous arrangements that allowed the national oil company to keep large portions of the earnings before remittance.

The reform affects royalties, taxes, and profit-sharing from oil and gas operations, which will now bypass intermediary deductions and flow directly to the central treasury. The policy aims to increase transparency and ensure that every level of government receives its fair share of funds.

Under the previous system, NNPC Ltd. retained a significant management fee and other allocations for exploration and operational costs. The new directive cancels these practices, ensuring more of the country’s oil wealth reaches public coffers immediately.

A special committee has been established to supervise the changes and guarantee smooth implementation. Officials say the reforms are intended to strengthen fiscal accountability and expand resources for critical areas such as healthcare, education, and infrastructure development.