Following President Bola Tinubu’s Executive Order mandating the direct remittance of all oil and gas revenues into the Federation Account without deductions, the federal government has launched a comprehensive review of past collections and initiated steps to recover any outstanding sums.
The Minister of State for Finance and Chairman of the Federation Account Allocation Committee (FAAC), Dr. Doris Uzoka-Anite, has directed key agencies—including the Nigerian National Petroleum Company Limited (NNPC Ltd), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Nigeria Revenue Service (NRS), oil contractors, and operators—to provide full financial records and cooperate fully with the audit process.
In a letter titled “Implementation of Presidential Executive Order on Safeguarding Federation Oil and Gas Revenues and Providing Regulatory Clarity – Immediate Remittance Directive and Retrospective Audit,” sighted by THISDAY, the minister reinforced Section 162 of the Constitution, which requires all revenues accruing to the Federation to be paid into the Federation Account without deduction.
She directed immediate cessation of:
– Deductions and retention of the 30% allocation to the Frontier Exploration Fund (FEF)
– Payment and retention of the 30% management fee on profit oil and profit gas revenues previously payable to NNPC Ltd
– Payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF)
– All forms of off-budget allocations and administrative deductions inconsistent with the Executive Order
The minister mandated that all profit oil, profit gas, royalty oil, tax oil, gas flare penalties, and any other petroleum-related revenue streams due to the Federation be remitted directly into a designated Sub-Federation Account (to be managed by the Office of the Accountant-General of the Federation) pending FAAC distribution.
“No institution shall retain, net off, or deduct funds before remittance,” she stated.
Retrospective Audit Commissioned
Beyond immediate remittance, the federal government has commissioned a retrospective audit covering three major areas:
1. Frontier Exploration Fund — Total collections since inception under the Petroleum Industry Act (PIA), expenditures and commitments, current balances, and investment placements.
2. Midstream and Downstream Gas Infrastructure Fund — Gas flare penalties collected, transfers and utilisation, and compliance with procurement regulations.
3. NNPC Ltd 30% Management Fee — Total deductions made, utilisation of retained funds, and outstanding balances due to the Federation.
All affected entities have been directed to provide unrestricted access to financial records, documentation, and audit teams. Where findings reveal outstanding sums due to the Federation, immediate restitution into the Sub-Federation Account will be required.
Weekly remittance reports must now be submitted to the Minister of State for Finance. Any breach of the directive will be treated as a violation of a lawful executive order and constitutional fiscal provisions.NNPC, Dangote Refinery Renew Strategic Alliance
Meanwhile, the Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, led a delegation to the Dangote Refinery and Petrochemical Complex in Ibeju-Lekki, Lagos, where both parties renewed their strategic collaboration to enhance Nigeria’s energy security.
The visit included a facility tour and high-level discussions focused on deepening operational and commercial ties.
Ojulari commended Alhaji Aliko Dangote for his vision in delivering the 650,000 barrels per day refinery, describing it as a landmark project positioning Nigeria as a major downstream hub in Africa.
He highlighted the alliance’s potential to unlock synergies across assets, infrastructure, capital, and markets, including upstream expansion, trading, shipping, and gas supplies.
Ojulari expressed appreciation to President Tinubu for his visionary leadership, policy clarity, investor-friendly reforms, and commitment to sectoral transformation, which have created an enabling environment for such partnerships.
Aliko Dangote stated: “Nigerians will be the beneficiaries of the synergy between Dangote Group and NNPC Limited, because our collaboration will achieve economies of scale and unlock value across markets.”
NNPC currently holds a 7.25% stake in the Dangote Refinery, aligning with its downstream growth objectives and commitment to domestic refining capacity.
The renewed partnership reinforces both entities’ shared vision for Nigeria’s
future, industrial growth, and energy security.
