Reported by: Ijeoma G | Edited by: Gabriel Osa
President Bola Ahmed Tinubu has issued a directive to the Nigerian National Petroleum Company (NNPC) Limited, instructing that all oil taxes, royalties, and related revenue be remitted directly to the Federation Account. The move is aimed at enhancing fiscal transparency, strengthening revenue management, and ensuring that the central government has timely access to petroleum earnings.
The order was communicated to NNPC management during a high-level briefing at the Presidential Villa, emphasizing the importance of direct revenue remittance for national budgeting and oversight purposes. Officials noted that previous arrangements, which allowed some petroleum funds to remain within operational accounts before central remittance, contributed to delays and limited government visibility over total oil earnings.
Under the directive, NNPC is expected to streamline its internal financial procedures, ensuring that all statutory taxes, royalties, and government entitlements from upstream and downstream petroleum operations are deposited into the Federation Account without delay. The Presidency indicated that this measure would complement ongoing reforms in the oil and gas sector and enhance the integrity of public finance management.
Economic analysts suggest that the policy could improve fiscal planning by providing the Federal Government with a more accurate and predictable revenue stream. Direct remittance is also expected to reduce bottlenecks, mitigate mismanagement risks, and align Nigeria’s petroleum revenue practices with international best practices.
NNPC’s compliance with the directive will be closely monitored by the Ministry of Finance and relevant oversight bodies. The measure aligns with broader government objectives to ensure accountability in the management of natural resources and optimize the country’s earnings from its petroleum sector.
Observers note that effective implementation will require coordination across regulatory, operational, and financial divisions within NNPC, as well as adherence to existing fiscal and legal frameworks governing the petroleum industry. The government has emphasized that this is not merely an administrative adjustment but a strategic effort to safeguard national resources and strengthen institutional control over oil revenue.
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