President Bola Tinubu don shake Nigeria oil money table with one strong Executive Order wey fit change how billions of naira dey enter government pocket every month.
Under the new order, all royalty oil, tax oil, profit oil, profit gas and every other money wey suppose reach government under production sharing and risk service contracts must now enter Federation Account direct — no more passing through plenty layers before sharing.
Based on 2025 figures, this move fit push about N14.5 trillion to N15 trillion extra enter Federation Account, meaning federal, state and local governments fit begin see bigger allocation for FAAC sharing.
Before now, since Petroleum Industry Act start for 2021, only 40 percent of some oil proceeds dey enter Federation Account. The remaining 60 percent dey stay with NNPC — 30 percent go Frontier Exploration Fund and another 30 percent go as management fee. But with this new order, that arrangement don stop.
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NNPC no go again hold the 30 percent Frontier Exploration Fund wey dey sponsor oil search for places like Chad Basin, Sokoto Basin, Bida Basin and other frontier areas. The 30 percent management fee on profit oil and profit gas don also end.
Gas flare penalties wey dey go Midstream and Downstream Gas Infrastructure Fund now must enter Federation Account direct. Even Petroleum Profits Tax and Hydrocarbon Tax money wey Nigeria Revenue Service dey collect — over N4.9 trillion for 2025 — now go flow straight to the main purse.
Tinubu talk say too many deductions and overlapping funds don weaken remittances over the years. According to am, oil and gas revenue must serve Nigerians first, and leakages must stop. He say Nigeria no fit continue lose money through complicated retention systems.
Experts say this move fit seriously boost FAAC allocation and reduce budget pressure for states wey dey struggle to pay salary and execute projects. But some energy analysts warn say parts of the order fit clash with provisions inside Petroleum Industry Act and may need legislative adjustment to avoid legal wahala or investor fear.
If implementation run smoothly, Nigeria fit dey enter new phase of tighter fiscal control and more transparent oil revenue management.
As FAAC meeting dey approach next week, many state governors dey watch closely — because if this N15 trillion projection materialise, allocation table go swell well-well.