President Tinubu has signed a landmark Executive Order introducing major reforms in the industry. Key highlights include:
1. Changes to NNPC Limited’s Role
- NNPC Limited will no longer:
- Retain the 30% management fee on Profit Oil and Profit Gas.
- Manage the 30% Frontier Exploration Fund from profit oil/gas.
- These revenues will now flow directly into the Federation Account.
2. Mandatory Remittances (Effective February 13, 2026)
All oil and gas operators must remit the following directly to the Federation Account:
- Royalty Oil
- Tax Oil
- Profit Oil
- Profit Gas
- Any other government entitlement
3. New Governance Structure
- A joint project team will be established to manage integrated upstream–midstream operations.
- Regulators will serve as the interface with license holders.
4. Oversight Committee
A high-level committee will oversee execution, comprising:
- Minister of Finance
- Attorney-General
- Minister of Budget
- Minister of State for Petroleum
- Chairman of the Nigeria Revenue Service
- Director-General of the Budget Office
- Other senior officials
5. Broader Policy Review
- The President has signaled a comprehensive review of the Petroleum Industry Act (PIA) 2021.
- Stakeholders will be consulted to address fiscal and structural challenges.
Implication: These reforms mark a significant shift in Nigeria’s oil and gas governance, with direct implications for revenue transparency, regulatory oversight, and industry operations.
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