President Bola Tinubu has issued an executive order that prohibits the Nigerian National Petroleum Company Limited (NNPC) from deducting management fees and contributions to the Frontier Exploration Fund. This directive is aimed at ensuring that all revenues due to the federation are properly remitted without deductions, enhancing fiscal transparency in the oil and gas sector. As a result of this executive order, revenue streams that had previously generated approximately N2.076 trillion over a four-year period have been effectively halted, a significant development for Nigeria’s economy.

Investigations reveal that the NNPC had accrued considerable funds from these deductions in recent years. Specifically, the analysis indicates that the NNPC received N20.739 billion in 2022, around N695.9 billion in 2023, N452.6 billion in 2024, and N906.91 billion in 2025. Collectively, these amounts underscore the scale of revenue that the nation will be deprived of following the new order. The decision is part of a broader reform initiative aimed at promoting fiscal responsibility and ensuring that all financial transactions within the oil and gas sector adhere to constitutional provisions and principles of transparency.

The implications of this executive order are significant, as they mark a shift in governance regarding the management and allocation of oil revenues in Nigeria. By enforcing full remittance without prior deductions, the government's approach could potentially lead to increased accountability and trust in how the country's oil wealth is managed. However, the immediate economic impact may provoke discussions around budgetary implications and how this decision affects the funding of critical national projects that rely on these oil revenues for financing.