In an attempt to enhance the oil and gas revenue streams to the Federal Government, President Bola Tinubu issued an Executive Order which suspends the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPC). This directive was communicated on Wednesday by Uloma Amadi, Assistant Director of Information and Public Relations at the Federal Ministry of Finance, and is aimed at safeguarding and optimizing the revenue flows linked to Nigeria's oil resources.

The Executive Order dictates that taxes, royalties, and profit oil derived from Production Sharing Contracts must be remitted directly to the appropriate fiscal authorities, effectively eliminating deductions at the source that have historically undermined fiscal collections. This change is perceived as an effort to address revenue leakages that have hampered the inflow of funds into the Federation Account, thus reaffirming the constitutional provisions governing these revenues.

This strategic move follows previous concerns regarding how weak fiscal inflows have impacted the country’s overall economic stability. By placing these financial mechanisms under tighter scrutiny and direct remittance channels, the Tinubu administration is advocating for a more transparent and accountable process in oil revenue collection that could strengthen the Federation’s financial position going forward.