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President Bola Tinubu has signed an Executive Order suspending the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPCL) and directing the full remittance of oil and gas revenues to the Federation Account.

The directive was disclosed on Wednesday in a statement by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance.

According to the ministry, the move is designed to realign oil and gas revenue flows with constitutional provisions, curb leakages, and strengthen fiscal transparency amid declining inflows into the Federation Account despite improved production and favourable market conditions.

The Finance Ministry said the President signed the Executive Order last week to safeguard revenues due to the Federation and prevent deductions at source under existing fiscal arrangements. It explained that the order mandates the direct remittance of taxes, royalties, and profit oil under Production Sharing Contracts to the appropriate fiscal authorities.

The ministry added that the oil and gas sector must operate in a manner that delivers transparent, constitutionally compliant, and fully accounted revenue flows to benefit the broader economy.

The Executive Order addresses fiscal and structural arrangements introduced under the Petroleum Industry Act, which restructured the oil and gas industry and commercialised NNPC into a limited liability company. Some of these arrangements, according to the ministry, resulted in off-budget allocations and deductions from Federation revenues.

The Executive Order takes immediate effect and is described as an interim corrective measure pending legislative amendments to entrench the reforms in statute.

NNPCL remains a critical contributor to federal revenues, and the new directive signals tighter oversight of oil revenue administration, with potential implications for its cost recovery and funding mechanisms under the Petroleum Industry Act.