In a significant policy shift, the Nigerian president has ordered a change in how oil and gas revenues are managed and remitted to the Federation Account. This move comes in response to long-standing concerns that the Nigerian National Petroleum Corporation Limited (NNPCL) retains an excessively high management fee of 30% of the Federation's oil revenues, alongside 20% of its profits for speculative investments and operating costs. Experts have criticized this practice, highlighting that it diverts crucial funds away from critical national priorities such as security, healthcare, and education.

The new directive aims to streamline the process by ensuring that a larger portion of these revenues directly contributes to the Federation Account. This change not only reflects an attempt to improve financial accountability within the energy sector but also signifies a broader strategic shift towards prioritizing national development over inefficient and speculative spending. Such a transformation is expected to have far-reaching implications on the country's budgetary processes and overall economic stability, promoting a more sustainable financial framework.

As Nigeria grapples with pressing economic challenges, including high debt levels and the need for a transition in energy policies, this directive is seen as a necessary corrective measure. By enhancing the direct flow of oil and gas revenues to the Federation Account, the administration hopes to bolster funding for essential services and investments in renewable energy, ultimately aiming to foster a more resilient economy capable of meeting the needs of its citizens.