Tinubu’s order halts NNPC fee deductions, stirs industry debate
President Bola Tinubu has issued an executive order stopping the Nigerian National Petroleum Company Limited (NNPC) from deducting management fees and Frontier Exploration Fund contributions before remitting oil and gas revenues. This move affects about N2.1tn in deductions made by NNPC over four years. The directive aims to ensure all revenues are paid into the Federation Account before any operational charges, in line with constitutional fiscal provisions. The order has sparked mixed reactions among state governments, industry players, and labour groups.
What we know
- The executive order stops NNPC from making automatic deductions for management fees and the Frontier Exploration Fund before remitting oil and gas revenues.
- NNPC had retained about N2.1tn between 2022 and 2025 through these deductions, with notable fluctuations in annual and monthly figures.
- State governments and transparency advocates support the move, saying it will increase distributable revenues and accountability.
- Industry players warn the order could disrupt funding for frontier exploration and joint ventures, potentially affecting production and investor confidence.
- Labour groups call for a clear implementation framework to avoid disruptions to production and job security, urging transparent funding for critical projects.
