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FG, States, LGs to Gain ₦15tn as Tinubu Signs Revenue Executive Order
This is based on an analysis of revenue inflows in 2025, drawing on monthly earnings submitted to the Federation Account Allocation Committee and obtained by our correspondent in Abuja on Thursday.
Based on estimates from 2025 remittances to the Federation Allocation Accounts Committee, the Nigerian National Petroleum Company is projected remit about N906.91bn in management fees and frontier exploration funds, while oil and gas royalties totalling N7.55tn and gas flaring penalties of N611.42bn collected by the Nigerian Upstream Petroleum Regulatory Commission will now be remitted directly to the Federation Account.
The Nigeria Revenue Service will also lose the authority to collect Petroleum Profits Tax and Hydrocarbon Tax, which generated N4.905tn in 2025, while the Midstream and Downstream Gas Infrastructure Fund recorded N596.61bn in the same period, bringing the total affected revenue streams to about N14.57tn.
It was reported on Wednesday that the President signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited. The order, which took effect from February 13, 2026, is aimed at safeguarding oil and gas revenues due to the Federation and improving remittances into the Federation Account.
According to details of the directive, the President invoked Section 5 of the Constitution of the Federal Republic of Nigeria (as amended), while the policy was anchored on Section 44(3), which vests ownership and control of all minerals, mineral oils, and natural gas in the Government of the Federation.
The implementation of the directive commenced in January, and its impact is expected to reflect in the revenue allocations at the FAAC meeting scheduled for next week.
Since the implementation of the PIA in 2021, the Federation Account, shared by the federal, state, and local governments, received only 40 per cent of proceeds from Production Sharing Contracts. The remaining 60 per cent was retained by the NNPC, split between a 30 per cent Frontier Exploration Fund and a 30 per cent management fee.
Under the new directive, NNPC will no longer collect and manage the statutory 30 per cent Frontier Exploration Fund, a development expected to significantly alter the revenue landscape of the oil and gas sector.
The frontier exploration fund is designed to finance hydrocarbon exploration activities in Nigeria’s frontier basins, areas outside the traditional Niger Delta producing belt, where commercial discoveries have yet to be fully established. These include: the Chad Basin in the North-East, the Sokoto Basin in the North-West, the Bida Basin in North-Central Nigeria, the Benue Trough, and parts of the Dahomey basin.
Exploration in these locations is aimed at expanding Nigeria’s reserve base, reducing regional concentration of oil production, and enhancing long-term energy security. Activities typically involve seismic data acquisition, exploratory drilling, geological studies, and appraisal campaigns.
The fund was floated under the Petroleum Industry Act because frontier basins are generally high-risk and capital-intensive, and therefore would require sustained funding considered critical to maintaining exploration momentum.
In addition, the national oil company will no longer be entitled to the 30 per cent management fee on profit oil and profit gas revenues. The order further directed that all operators and contractors of oil and gas assets under Production Sharing Contracts must now pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other government interest directly into the Federation Account.
The directive also suspended payments of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, instructing the Nigerian Upstream Petroleum Regulatory Commission to remit all proceeds from penalties imposed on operators directly into the Federation Account.
It further directed that all expenditure from the Midstream and Downstream Gas Infrastructure Fund must now comply with extant public procurement laws and regulations. Tinubu said excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account, warning that the practice must end to protect national revenue.
In a post on his verified X handle, the President stated that for too long, revenues meant for federal, state, and local governments had been trapped in layers of charges and retention mechanisms, thereby slowing development across the country.
He said, “For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account. When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end.”
Tinubu emphasised that oil and gas revenues must serve Nigerians first, noting that the ongoing reforms in the sector are aimed at promoting fairness and fiscal responsibility. He added, “Oil and gas revenues must serve the Nigerian people first, and this reform is about fairness and fiscal responsibility.”
The President explained that as the government strengthens national security, invests in education, expands healthcare, stabilises the economy, and advances the country’s energy transition, every legitimate revenue due to the Federation must be protected.
According to him, NNPC will now operate strictly as a commercial enterprise in line with the law, stressing that the era of duplicative deductions and fragmented oversight in the sector is over. Tinubu also disclosed that his administration would undertake a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies weakening national revenue.
He further announced the approval of an implementation committee to oversee and ensure effective and coordinated execution of the executive order on the matter.
The President said, “Nigeria can no longer afford leakage where there should be leadership. We are safeguarding the Federation Account. We are strengthening our budget. We are acting in the national interest.”
He reiterated that the reforms are part of his administration’s commitment to Nigerians, adding that the policy direction aligns with his “Nigeria First” promise.
Based on the latest Federation Allocation Accounts Committee revenue data for 2025, the reallocation could have far-reaching implications for government earnings and sector institutions.
While many Nigerians and energy experts have expressed concerns over the potential impact of the policy on the oil and gas industry, a review of potential revenue reallocation suggests that the NNPC may be the least affected among the key players.
Other relevant government agencies operating within the sector could bear a heavier burden, particularly in terms of revenue losses, operational adjustments, and institutional restructuring.
The Spiritual Director of the Adoration Ministry Enugu, , has offered prayers for , praying for God’s favour, protection, and victory as the state approaches the coming elections.
Speaking during a church gathering, Mbaka declared that Governor Mbah would succeed, expressing confidence that God, whom he said had begun a great work through the governor, would bring it to completion.
“It shall be well with Peter Mbah; may the favour of God be with him. We back him with our prayers. The Adoration family throws our prayers around him, that he will succeed, in the name of Jesus. May God grant him the power of victory at the end of the whole election,” Mbaka said.
The cleric further expressed hope that Mbah’s leadership would bring joy to the Igbo people, the people of Enugu State, and the Church, adding that the Igbo economy could witness greater advancement under his administration.
According to Mbaka, the progress recorded so far gives hope that greater achievements lie ahead, stressing that God would perfect the work already begun.
His remarks come as political activities continue to gather momentum ahead of the forthcoming elections.
ENUGU — Governor Peter Mbah has directed the Enugu State Emergency Management Agency (ESEMA) to provide immediate relief materials and other palliative support to two families displaced by the fire that razed a two-storey building at No. 22 Church Road, Asata, Enugu, on Saturday.
The governor’s directive followed reports by Everydaynewsngr that the inferno destroyed two flats and consumed household property, valuables, and important documents belonging to the affected families, leaving them homeless.
The General Manager of ESEMA is expected to assess the extent of the damage and coordinate the distribution of emergency relief items to ease the hardship faced by the victims while further interventions are considered.
Residents of the area welcomed the governor’s swift response, describing it as a demonstration of compassion and responsible leadership at a difficult time for the affected families.
One of the victims, an employee of a higher institution in Enugu State who is said to be approaching retirement, had lamented that the fire wiped out decades of savings and destroyed all his household belongings, including vital documents and certificates.
No lives were lost in the incident, while the cause of the fire is yet to be determined. Authorities are expected to investigate the circumstances surrounding the outbreak as affected families begin the difficult task of rebuilding their lives.
The state government urged residents to remain safety conscious and report fire emergencies promptly to relevant agencies to minimise damage and loss of property.
By Our Reporter
Stakeholders in Nigeria’s real estate industry, alongside Golden Land Estate Ventures Limited, have called for urgent reforms to strengthen professionalism, transparency, and investor confidence in the sector.
The call was contained in a communiqué issued on Monday in Enugu following the company’s 2026 Mid-Year Seminar/Luncheon, held on Friday, July 3, at Wendy’s Place. The seminar, themed “Next-Level Real Estate Practices,” brought together real estate developers, chief executive officers, realtors, marketers, investors, and other stakeholders from the South-East to examine emerging industry trends, challenges, and practical strategies for sustainable growth.
According to the communiqué, participants unanimously adopted several resolutions after extensive deliberations.
Among the key resolutions was a call for stronger government action against the multiple sale of land. Participants urged the Federal, State, and Local Governments to strengthen land administration policies and impose stringent sanctions on communities and individuals involved in the fraudulent sale of the same parcel of land to multiple buyers.
They noted that such practices continue to erode investor confidence, fuel land-related litigation, and discourage genuine investment in the real estate sector.
The stakeholders also stressed the need to promote professionalism and healthy competition within the industry. They maintained that competition should be driven by integrity, innovation, quality service delivery, and professionalism rather than unhealthy rivalry, misinformation, or actions capable of damaging the reputation of fellow practitioners.
They further encouraged industry leaders to embrace collaboration as a means of promoting collective growth and enhancing public confidence in the sector.
The communiqué also emphasised the importance of honesty and transparency in dealings with clients. Participants urged real estate practitioners to refrain from making false claims, exaggerating property values, misrepresenting estate locations or approvals, or giving unrealistic assurances merely to secure transactions.
They insisted that prospective buyers should be provided with accurate, verifiable, and complete information before making investment decisions.
On service delivery, the seminar called on real estate developers and chief executives to establish effective internal controls to eliminate the overselling or double allocation of plots. Developers were also urged to ensure prompt allocation of purchased lands and timely issuance of all necessary documentation.
According to the communiqué, efficient service delivery is critical to sustaining customer trust and improving the credibility of the industry.
The participants also called on government agencies, industry regulators, professional bodies, community leaders, developers, and practitioners to work together in building a transparent, accountable, and investment-friendly real estate environment that protects property buyers and supports sustainable national development.
Golden Land Estate Ventures Limited reaffirmed its commitment to promoting ethical business practices, professional excellence, continuous capacity development, and responsible real estate investment in Nigeria.
The communiqué was signed by Comrade Damian Ogudike and Mr. Ikechukwu Eze, directors of Golden Land Estate Ventures Limited, on behalf of the company’s board. It was also drafted and endorsed by the seminar’s resource persons, Mrs. Amaka Dim of Exotic Landlady Estate and Miss Blessing Anene of BuildWise Solution Centre Estate.
By Our Correspondent
ENUGU — Two families were left homeless on Saturday after a fire destroyed two flats in a two-storey building located at No. 22 Church Road, Asata, in Enugu metropolis.
The fire, which started at about 10 a.m., reportedly broke out after the occupants of the affected upper-floor flats had left for their daily activities.
Although the cause of the fire was yet to be ascertained as of the time of filing this report, eyewitness Tony Iroji said the inferno completely destroyed household items and other valuables in the affected apartments.
One of the victims, who returned home while the building was engulfed in flames, reportedly collapsed after seeing the extent of the damage. He was revived by sympathisers at the scene.
The victim, said to be an employee of one of the higher institutions in Enugu State and nearing retirement, lamented that years of hard work had been wiped out by the incident.
According to him, the fire destroyed all his household property, including important documents and certificates, leaving him with no option but to relocate his family to his ancestral home.
“All I have worked for all these years is gone,” he said in tears.
No life was lost in the incident, but residents appealed to the Enugu State Government, emergency management agencies and public-spirited individuals to come to the aid of the affected families, even as they urged the authorities to investigate the cause of the fire.
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The National Association of Nigerian Students (NANS), the apex students governing body, has issued a four days ultimatum to South African business interests to evacuate Nigeria.
This is contained in a statement issued on Monday in Enugu by Comrade Amb. Bestman Okereafor, NANS National Executive Director, Cooperate and Private Sectors Engagement.
The statement said that after the expiration of the ultimatum, South African business interests would face full wrath of the over 43.1 million Nigerian students scattered in the nooks and crannies of the country.
“The attention of the apex students governing body, NANS, has been drawn to continuous attacks, intimidation and subsequent chase of law abiding, peaceful and hardworking Nigerians and other Africans from South Africa.
“As the biggest students body in Africa, we are giving South African business interests four days to evacuate our beloved country, Nigeria.
“The reason for this action is simple. South Africans cannot continue to oppress and chase our people from their country and expect their businesses to thrive on our soil,” it said.
The statement further noted that immediately after expiration of the ultimatum, NANS will consider picketing South Africa business interests, while further actions will follow.”
It called on the Federal Government of Nigeria and the African Union (AU) to take more decisive actions against South Africa for their inimical acts towards other Africans.
“It is on record that Nigeria played a major role in support of South Africa during the apartheid struggle and should never be paid with disloyalty, disrespect and global embarrassment,” it added.
It would be recalled that xenophobic attack by South Africans on other Africans for some months had led to Nigerians being physically assaulted, embarrassed, intimidated, injured and some gruesomely murdered.
Several Nigeria business interests and business premises, owned by law abiding Nigerians in South Africa, had been completely burnt down or destroyed by rampaging South Africans without any justification.
The alleged perpetrators of these crimes had earlier given Nigerians and other Africans an ultimatum of June 30 to leave South Africa.
The Federal Government through the Ministry of Foreign Affairs had in recent weeks airlifted hundreds of Nigerians, who are willing to leave the unfriendly country and her people, free of charge back to Nigeria.
However, some of those, who returned to Nigeria recently, left South Africa barely with the cloth they put on, losing savings, valuables and businesses they set up or acquired after many years.
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