Connect with us

News

PRESIDENT TINUBU SIGNS EXECUTIVE ORDER FOR DIRECT REMITTANCE OF OIL AND GAS REVENUES TO FEDERATION ACCOUNT

Published

on

PRESIDENT TINUBU SIGNS EXECUTIVE ORDER FOR DIRECT REMITTANCE OF OIL AND GAS REVENUES TO FEDERATION ACCOUNT

 

President Bola Tinubu has issued an executive order to safeguard and enhance oil and gas revenues for the Federation, curb wasteful spending, eliminate duplicative structures in this critical sector of the national economy, and redirect resources for the benefit of the Nigerian people.

The President signed the EO in pursuance of Section 5 of the Constitution of the Federal Republic of Nigeria (as amended).

The Executive Order is anchored on Section 44(3) of the Constitution, which vests ownership, control, and derivative rights in all minerals, mineral oils, and natural gas in, under, and upon any land in Nigeria, including its territorial waters and Exclusive Economic Zone, in the Government of the Federation.

The directive seeks to restore the constitutional revenue entitlements of the federal, state, and local governments, which were removed in 2021 by the Petroleum Industry Act (PIA). The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges, and fees.

Under the current PIA framework, NNPC Limited retains 30 per cent of the Federation’s oil revenues as a management fee on Profit Oil and Profit Gas derived from Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts.

In addition, the company retains 20 per cent of its profits to cover working capital and future investments.

Given the existing 20% retention, the additional 30% management fee is considered unjustified by the Federal Government, as the retained earnings are already sufficient to support the functions NNPCL performs under these contracts.

NNPC Limited also retains another 30% of its profit oil and profit gas under the production sharing, profit sharing, and risk service contracts, as the Frontier Exploration Fund under sections 9(4) and (5) of the PIA. A fund of this size, being devoted to speculative exploration, risks accumulating large idle cash balances, which would encourage inefficient exploration spending, at a time when government resources are urgently needed for core national priorities, including security, education, healthcare, and energy transition investments.

There is also the Midstream and Downstream Gas Infrastructure Fund (MDGIF) under Section 52(7)(d) PIA, funded by the collection of gas flaring penalties provided under Section 104. The fund is to be used for supporting environmental remediation and relief for host communities impacted by gas flaring. However, section 103 of the PIA has already established a dedicated Environmental Remediation Fund, administered by NUPRC, specifically designed to fund the rehabilitation of communities negatively impacted by upstream petroleum operations, including gas flaring. Furthermore, Section 103 already imposes a fee on lessees to contribute to this fund for precisely this purpose.

All these deductions far exceed global norms and effectively divert more than two-thirds of potential remittances to the Federation Account. The continuing decline in net oil revenue inflows is largely attributable to these deductions and fragmented oversight under the current PIA architecture.

The Executive Order aims to resolve, among other things, the duplicative 30 per cent deduction for profit-sharing arrangements by addressing overlapping and redundant provisions across all relevant laws and regulatory instruments within the PIA framework and NNPC Limited’s governing structure. The objective is to eliminate unjustified multiple layers of deductions that erode revenues that ought to accrue to the Federation Account, enabling the three tiers of government to pursue critical national priorities.

The President has identified structural concerns regarding the continued role of NNPC Limited as a concessionaire under Production Sharing Contract arrangements. The existing framework, which allows the company to influence operating costs while simultaneously functioning as a commercial entity, creates potential competitive distortions and undermines its transition into a fully commercial operator as envisioned under the PIA.

The Executive Order, therefore, introduces immediate measures to curb leakages, enhance transparency, eliminate duplicative structures, and reposition NNPC Limited strictly as a commercial enterprise, while safeguarding the Federation’s interests.

In rolling out the order, the President affirmed that the reforms are of urgent national importance, given their implications for national budgeting, debt sustainability, economic stability, and the overall well-being of Nigerians.

President Tinubu noted that his administration will also undertake a comprehensive review of the Petroleum Industry Act in consultation with relevant stakeholders to address identified fiscal and structural anomalies.

According to the Presidential Executive Order, which has been officially gazetted, NNPC Limited will no longer collect and manage the 30% Frontier Exploration Fund. NNPC Limited will ensure that the 30% profit from oil and gas from production sharing, profit sharing, and risk service contracts currently earmarked for the frontier exploration fund is henceforth transferred to the Federation Account.

NNPC Limited will also no longer be entitled to the 30% management fee on profit oil and profit gas revenues that should go to the federation account.

In the same vein, all operators/contractors of oil and gas assets held under a production sharing contract shall, from the date of the Executive Order, which is February 13, 2026, pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other interest howsoever described which is due to the government of the federation directly to the Federation Account.

President Tinubu has also suspended payments of the Gas Flare Penalty into the Midstream and Downstream Gas Infrastructure Fund. The Commission shall, from the date of the Executive Order, pay proceeds from all penalties imposed on operators for flaring gas into the Federation Account and cease payment of such proceeds into the Midstream and Downstream Gas Infrastructure Fund (MDGIF). All expenditure from the MDGIF shall be conducted in line with extant public procurement laws, policies and regulations.

President Tinubu has approved the constitution of a joint project team to execute integrated petroleum operations. The Commission shall serve as the interface with licensees and lessees in respect of integrated operations where upstream and midstream petroleum operations are fully combined.

President Tinubu approved the establishment of an Implementation Committee to oversee and ensure the effective, coordinated implementation of the executive order. The members of the committee include the Minister of Finance and Coordinating Minister of the Economy, the Attorney-General of the Federation and Minister of Justice, the Minister of Budget and National Planning and the Minister of State, Petroleum Resources (Oil). Other members of the Committee are the Chairman, Nigeria Revenue Service; a Representative of the Ministry of Justice; the Special Adviser to the President on Energy; and the Director-General, Budget Office of the Federation. The latter will provide a secretariat to the committee.

Bayo Onanuga
Special Adviser to the President
(Information & Strategy)

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

BOCA Energy Boss, James Ukachukwu Acknowleges Lagos NUJ Awards, Commends Journalists For Promoting Accountability And Good Governance

Published

on

BOCA Energy Boss, James Ukachukwu Acknowleges Lagos NUJ Awards, Commends Journalists For Promoting Accountability And Good Governance

The Chairman/Chief Executive Officer of BOCA Energy Resources Limited and BOCA IT Systems Limited, Mr. James Ukachukwu, has expressed profound appreciation to the Nigeria Union of Journalists (NUJ), Lagos State Council, Correspondents’ Chapel, for conferring on him two distinguished awards during its 2026 Press Week and Award Ceremony.

DASCENARIO reports that Mr. Ukachukwu described the recognition as a humbling honour and a strong affirmation of the commitment of BOCA Energy Resources Limited and BOCA IT Systems Limited to innovation, corporate excellence, sustainable development, responsible business leadership, and national growth.

According to him:

“I receive these awards with profound gratitude, humility, and a renewed sense of responsibility. I sincerely thank the Nigeria Union of Journalists, Lagos State Council Correspondents’ Chapel, for finding me worthy of this recognition. This honour is not only a personal milestone but also a testament to the dedication, professionalism, and relentless commitment of the remarkable teams at BOCA Energy Resources Limited and BOCA IT Systems Limited.”

He further commended the leadership of the Correspondents’ Chapel and the Lagos State Council of the NUJ for organizing a highly successful Press Week centred on the theme ‘Journalism and Nation Building: Promoting Accountability and Good Governance.’

Mr. Ukachukwu noted that the theme reflects the indispensable role of the media in strengthening democracy, encouraging transparency, fostering responsible leadership, and ensuring sustainable national development.

“A nation can only attain sustainable progress when institutions operate with integrity, transparency, accountability, and respect for the rule of law. Journalism remains one of the strongest pillars for promoting these ideals by informing citizens, demanding accountability from leaders, and giving voice to society.”

He applauded journalists for their courage, professionalism, and resilience despite the enormous challenges confronting the media profession.

“The Nigerian media has consistently served as the conscience of society. Through objective reporting, investigative journalism, and responsible public engagement, journalists continue to deepen democracy, inspire reforms, and promote good governance. Their sacrifices deserve recognition and support.”

The BOCA Chairman emphasized that the private sector also has a strategic responsibility in nation-building through ethical corporate governance, innovation, job creation, technological advancement, and sustainable investments.

“At BOCA Energy Resources Limited and BOCA IT Systems Limited, we believe that innovation, integrity, and responsible leadership are indispensable drivers of national transformation. Every investment we make, every project we execute, and every technology solution we deploy is aimed at creating lasting value for our clients, our communities, and Nigeria’s economy.”

He also commended the Chairman of the NUJ Lagos State Correspondents’ Chapel, members of the Planning Committee, and the leadership of the NUJ Lagos State Council for sustaining a platform that celebrates excellence in journalism while encouraging dialogue on issues of national importance.

“I congratulate the organisers for putting together a truly remarkable event that not only celebrated excellence but also challenged leaders across public and private sectors to embrace accountability, transparency, and responsible governance. Such conversations are essential to building the Nigeria we all desire.”

Mr. Ukachukwu dedicated the awards to the entire BOCA family, strategic partners, clients, and stakeholders whose confidence and support have continued to inspire excellence.

“These awards belong to every member of the BOCA family whose professionalism, innovation, resilience, and unwavering commitment to excellence continue to position our companies among trusted indigenous brands. Together, we will remain committed to delivering sustainable energy solutions, digital transformation, and impactful investments that contribute meaningfully to Nigeria’s development.”

He reaffirmed BOCA Energy Resources Limited’s and BOCA IT Systems Limited’s commitment to maintaining the highest standards of corporate governance, innovation, safety, quality service delivery, and strategic partnerships that foster inclusive economic growth.

Mr. Ukachukwu concluded by wishing the Nigeria Union of Journalists continued success in advancing ethical journalism, defending press freedom, promoting accountability, and strengthening democratic governance in Nigeria.

Continue Reading

News

PETROAN Calls on Depot Owners and Stakeholders to Reduce Local Petrol Prices Amid Global Oil Decline

Published

on

PETROAN Calls on Depot Owners and Stakeholders to Reduce Local Petrol Prices Amid Global Oil Decline

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged refiners, depot operators, and petroleum product importers to immediately reduce prices in line with the recent decline in global crude oil markets.

According to the association, such an adjustment is necessary to ensure that Nigerian consumers benefit directly from the easing of international market conditions.

PETROAN emphasized that the fall in global crude prices presents a clear opportunity for downstream operators to lower both ex-depot and retail pump prices. This, it noted, would provide much-needed relief to households and businesses currently burdened by economic pressures.

PETROAN’s National President, Billy Gillis-Harry, said the realities of the international oil market should be reflected in local petroleum pricing.

“Brent crude has fallen to approximately $77 to $78 per barrel following the ceasefire agreement between the United States and Iran and expectations that oil exports through the Strait of Hormuz will gradually normalise,” it disclosed in a statement signed by PETROAN National Public Relations Officer, Joseph Obele.

“Market analysts have noted that crude oil prices are currently under downward pressure, although geopolitical risks remain. Current projections suggest that Brent crude may trade within the range of $75 to $82 per barrel next week, while West Texas Intermediate (WTI) crude is expected to trade between $72 to $79 per barrel.

Concerns Over Local Refining Costs

The association expressed concern that imported petroleum products are, in some cases, landing in Nigeria at costs lower than the prices offered by domestic refiners.

According to him, this development is surprising and underscores the need for a more competitive downstream petroleum market that guarantees consumers access to the most affordable products available.

He therefore called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers. He explained that increased competition among suppliers would help moderate prices, discourage monopolistic tendencies, and ensure a steady supply of petroleum products across the country.

The PETROAN President maintained that competition remains one of the most effective mechanisms for driving efficiency, reducing costs, and protecting consumers. He noted that a competitive market environment would encourage all market participants to review their prices
downward in line with prevailing market realities.

In a bid to further encourage competition that will benefit consumers, PETROAN also called on the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, to facilitate talks with the two Chinese firms that have expressed interest in operating the Port Harcourt and Warri Refineries.

Prince Billy Gillis-Harry stated that if these refineries are successfully revived and operated as private-sector-driven facilities, petroleum product prices are expected to decline
further due to improved efficiency and increased domestic refining capacity.

He emphasized that the revival of operations at the Port Harcourt and Warri Refineries, under competent private management, would strengthen supply stability, foster healthy competition, and ultimately make petroleum products more affordable for Nigerians.

“For Nigeria, sustained moderation in crude oil prices, coupled with stable exchange rates and refining costs, should support lower petrol prices and provide relief to consumers and businesses facing economic challenges,” it added.

Continue Reading

News

Heirs Energies’ $750 Million Financing Emerges Best Oil, Gas Deal Of The Year

Published

on

Heirs Energies’ $750 Million Financing Emerges Best Oil, Gas Deal Of The Year

Heirs Energies Limited, Africa’s leading indigenous-owned integrated energy company, has been recognised on the global stage after its landmark US$750 million dual-tranche Senior Secured Reserve-Based Lending (RBL) facility was named Best Oil & Gas Deal of the Year at the EMEA Finance Project Finance Awards 2026.

The award was presented in London and recognises one of the largest financings secured by an indigenous African energy company. The transaction reflects the vision of Heirs Energies’ Chairman, Tony O. Elumelu, that African institutions and African-led businesses can successfully mobilise capital to unlock the continent’s resources, advance energy security, and create long-term economic value.

Executed with the African Export-Import Bank (Afreximbank), the US$750 million financing was structured to accelerate field development, optimise production, and support Heirs Energies’ long-term growth ambitions, while maintaining disciplined capital management.

Commenting on the recognition, Osa Igiehon, Chief Executive Officer of Heirs Energies, said: “This recognition reflects the confidence that African and international financial institutions continue to place in Heirs Energies, our strategy, and our long-term vision.

The transaction demonstrates that indigenous African energy companies can successfully structure and execute world-class financing solutions that support investment, growth, and value creation. We are proud to receive this award and grateful to our financing partners, advisers, and stakeholders whose support made it possible.”

Executive Vice President, Global Trade Bank at Afreximbank, Mr. Haytham ElMaayergi, said: “We are truly honoured that the US$750 million dual-tranche Senior Secured Reserve-Based Lending facility for Heirs Energies has been recognised as Best Oil & Gas Deal of the Year by the EMEA Finance Project Finance Awards.

This recognition underscores the importance of well-structured, Africa-focused financing in supporting indigenous energy companies with strong governance, high-quality assets and clear long-term growth plans. Afreximbank was proud to support this landmark transaction, which demonstrates how African financial institutions can help mobilise capital for strategic businesses that advance energy security, production capacity and sustainable value creation across the continent.

We congratulate Heirs Energies and all the partners involved in the transaction and are pleased to see this important financing recognised on such a respected international platform.”

Executive Director and Chief Financial Officer of Heirs Energies, Samuel Nwanze, added: “This award validates the strength of the transaction and the confidence our financing partners placed in Heirs Energies.

The facility was designed to support our long-term growth strategy, enabling continued investment in field development, production optimisation, and sustainable value creation. We are pleased to see the transaction recognised on such a respected global platform.”

The financing represented a major milestone in Heirs Energies’ evolution from acquisition-led financing to a capital structure aligned with the long-term development profile of its reserves. It further reinforced the Company’s position as a leading indigenous energy producer and demonstrated the ability of African institutions to finance transformational African businesses.

The EMEA Finance Project Finance Awards recognise outstanding transactions across Europe, the Middle East, and Africa, celebrating excellence, innovation, and impact in project and structured finance.

Continue Reading

Trending