Tinubu Moves To Tighten Oil Cash Flow

Tinubu Moves To Tighten Oil Cash Flow

President Bola Tinubu’s government has cleared a transition window for oil firms to start paying petroleum earnings straight into the Federation Account after the rollout of Executive Order 9.

The decision was taken at the first meeting of the implementation panel on 26 February 2026.

Officials say the plan is designed to curb long-running revenue leakages in the sector.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who heads the committee, said the shift would be managed carefully to avoid harming existing contracts and funding deals.

During this interim phase, companies will continue under the present remittance system until fresh guidelines are issued.

A technical team led by the President’s Special Adviser on Energy, Mrs Olu Verheijen, has been given three weeks to draft the framework and begin a review of the Petroleum Industry Act.

As part of the order, NNPC Limited has been told to halt certain deductions under Production Sharing Contracts, including a 30 per cent management fee and a 30 per cent frontier exploration charge from profit oil and gas.

Gas flare penalty payments to the Midstream and Downstream Gas Infrastructure Fund have also been paused.