PRESIDENT TINUBU RECLAIMS NIGERIA’S OIL WEALTH: A DECISIVE BLOW AGAINST WASTAGE

​By Dave Ikiedei Asei | Wisdom Tide News | February 20, 2026

THE DAWN OF FISCAL DISCIPLINE

​In a move that sends a clear signal to both domestic stakeholders and international markets, President Bola Ahmed Tinubu has officially signed a transformative Executive Order aimed at cleaning up the nation’s "financial plumbing." For too long, the Nigerian Federation Account has been bypassed by a labyrinth of deductions and management fees that favored institutional retention over national development.

​With the stroke of a pen on February 13, 2026, the President has acted under Section 5 and Section 44(3) of the Constitution to ensure that oil and gas revenues—the heritage of all Nigerians—are no longer diverted into "speculative" or "redundant" silos.

​DISMANTLING THE LAYERS OF REVENUE LEAKAGE

​The centerpiece of this reform is the elimination of the 30% Management Fee previously held by NNPC Limited on Profit Oil and Gas. The President’s administration identified that since NNPCL already retains 20% of its profits for working capital, an additional 30% was not only unjustified but an active erosion of the revenues meant for the Federal, State, and Local Governments.

​Under the new Executive Order:

• ​DIRECT REMITTANCE: All operators of Production Sharing Contracts must now pay Royalties, Tax Oil, and Profit Oil directly into the Federation Account.
• ​REPOSITIONING NNPCL: The company is being steered strictly toward a commercial enterprise model, removing its ability to influence operating costs while acting as a concessionaire—a move that promotes fair competition and transparency.

​PRIORITIZING NIGERIANS OVER SPECULATION

​One of the most praised aspects of the President’s directive is the suspension of the 30% Frontier Exploration Fund. At a time when Nigeria faces urgent needs in security, healthcare, and education, the President has determined that diverting massive resources into "speculative exploration" creates idle cash balances that encourage inefficiency.

​By redirecting these funds to the Federation Account, the administration is prioritizing the immediate "well-being of Nigerians" over long-term, high-risk gambles. Furthermore, by consolidating environmental funds and moving gas flare penalties to the central account, the President is eliminating the "fragmented oversight" that previously allowed more than two-thirds of potential remittances to be swallowed by administrative machinery.

​A COMMITMENT TO ACCOUNTABILITY

​To ensure these reforms are not bogged down by bureaucracy, President Tinubu has established a high-level Implementation Committee. This team, featuring the Minister of Finance and the Attorney-General, is tasked with ensuring the PIA is reviewed and that every kobo of oil revenue is accounted for under the new gazetted guidelines.

​THE IMPACT AT A GLANCE

OLD SYSTEM	NEW EXECUTIVE ORDER SYSTEM
NNPCL retains 30% Management Fee	0% Management Fee (Direct to Federation)
30% Frontier Exploration Fund (Idle)	Redirected to National Priorities
Gas Flare Penalties to MDGIF	Paid directly to Federation Account
Fragmented Revenue Collection	Unified, Transparent Direct Remittance

CONCLUSION: PROTECTING THE FUTURE

​President Tinubu’s bold action is a testament to his administration's "Renewed Hope" agenda. By plugging these leakages, the President is not just managing oil; he is safeguarding the economic stability and debt sustainability of the Federal Republic of Nigeria. This is a victory for the taxpayer and a firm step toward a transparent, prosperous future.

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