Nigeria Oil Revenue Remittance Reform

President Bola Tinubu has signed an executive order, effective February 13, 2026, directing the direct remittance of oil and gas revenues to Nigeria's Federation Account. This fiscal reform aims to curb leakages, eliminate duplicative deductions, and boost revenues available to the federal, state, and local governments. Key changes include NNPC ceasing to retain 30% management fees and 30% Frontier Exploration Fund deductions from profit oil and gas. Additionally, payments of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund are suspended, with proceeds now directed to the Federation Account. The order also mandates all operators/contractors of oil and gas assets under production sharing contracts to pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government dues directly to the Federation Account. An Implementation Committee, including the Minister of Finance and Coordinating Minister of the Economy and the Nigeria — Attorney General of the Federation, has been established to oversee the order's execution. The Nigeria — Revenue Mobilisation Allocation and Fiscal Commission has backed the order, and a comprehensive review of the Petroleum Industry Act is planned to address identified fiscal and structural anomalies.