President Bola Tinubu has signed an executive order directing the immediate remittance of oil and gas revenues to the Federation Account Allocation Committee (FAAC).
The presidency says the move is aimed at safeguarding national revenue, reducing waste, and removing duplicative structures in the petroleum sector. In a statement signed by Bayo Onanuga, presidential spokesperson, the presidency stated that the order is backed by constitutional provisions that vest control of mineral resources in the Federal Government.
With the gazetting of the executive order, NNPC Limited will no longer retain the 30 percent management fee on profit oil and gas. The 30 percent Frontier Exploration Fund will also be paid into the Federation Account. Gas flare penalties will now go directly to the Federation Account, and oil and gas operators have been directed to remit all royalties and taxes accordingly.
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An implementation committee has been set up to oversee the changes, and the government says the reform will strengthen public finances and support key national priorities.
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