NNPC, NUPRC Fear Financial Crisis After Tinubu Orders Direct Oil Revenue Remittance to Federation Account
Nigeria’s oil sector is facing fresh uncertainty following a major directive by President Bola Ahmed Tinubu ordering the direct remittance of oil and gas revenues into the Federation Account. The development has raised serious concerns within the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), as both agencies fear the order may significantly affect their financial stability and operations. The directive, which is part of the federal government’s efforts to improve revenue transparency and accountability, removes certain financial privileges previously enjoyed by the oil institutions under existing laws, especially the Petroleum Industry Act (PIA). Industry stakeholders say the decision marks one of the most significant fiscal policy changes in Nigeria’s oil sector in recent years. What Tinubu’s Order Means Under the new directive, revenues generated from petroleum operations such as: Royalty oil Profit oil P...