President Bola Tinubu has signed an executive order blocking the Nigerian National Petroleum Company Limited (NNPCL) from deducting management fees and contributions to the Frontier Exploration Fund, a practice that had amounted to more than two trillion naira in recent years. The directive requires that all oil and gas revenues be paid directly into the Federation Account, ensuring that federal, state, and local governments receive their full constitutional entitlements.
The move is being presented by the administration as part of a wider effort to strengthen transparency and fiscal discipline in Nigeria’s oil sector. Supporters argue that the order will help plug revenue leakages and restore accountability in the management of public funds. Civil society organizations welcomed the decision, describing it as a step toward curbing opaque practices that have long undermined Nigeria’s finances.
Critics, however, warn that stripping NNPCL of financial autonomy could weaken its operational capacity. Industry analysts caution that the company may struggle to meet obligations to contractors and investors if it cannot retain certain revenues, potentially affecting production and investment confidence.
Public reactions have been divided. Some Nigerians praised the order as a bold reform, with one commentator noting, “This is the kind of fiscal discipline the country needs to stabilize its economy.” Others expressed concern, saying, “If NNPCL cannot manage its finances independently, operations may suffer, and Nigeria could lose credibility with international partners.”
International observers have also taken note. Energy analysts abroad see the directive as part of Nigeria’s attempt to align its oil governance with global standards of transparency. At the same time, they emphasize that balancing reform with operational stability will be crucial to maintaining investor trust in Africa’s largest oil producer.
The executive order highlights Tinubu’s push to consolidate fiscal control and boost revenues, while reigniting debate over how best to manage Nigeria’s most vital industry.
