Tinubu Order Stops N2.1tn NNPC Deductions, Raises Debate on Oil-Sector Funding

President Bola Tinubu has directed the Nigerian National Petroleum Company Limited to stop deducting management fees and Frontier Exploration Fund contributions from oil and gas revenues before remittance to the Federation Account.

Findings based on Federation Account Allocation Committee records show the halted deductions amounted to about N2.076tn between 2022 and 2025: N20.739bn in 2022, N695.9bn in 2023, N452.6bn in 2024 and N906.91bn in 2025.

The directive requires full remittance first, with operational expenses expected to go through approved budget channels. Backers of the policy say it strengthens transparency and could improve funds available for sharing across the federation.

However, some operators and legal analysts warn the move could create friction between constitutional fiscal rules and provisions of the Petroleum Industry Act, especially around how production sharing contract operations are funded.

Industry voices also cautioned that abrupt implementation may affect investment sentiment and project execution unless a clear replacement funding framework is provided. Labour groups have asked for implementation clarity to protect output and jobs.

A presidential implementation committee has been tasked with coordinating execution of the order.