Tinubu's Executive Order finally names what the PIA quietly built

President Tinubu signed an Executive Order this week stripping NNPC's right to retain 30% of oil revenues as a "management fee" before remitting to the Federation Account.

That 30%, running into hundreds of billions of naira annually, was baked into how the Petroleum Industry Act was structured. NNPC kept it for operational costs. In practice, the company collecting revenue on behalf of the federation was also charging the federation for the privilege of doing so.

Tinubu's order says that stops now. All revenues go to the Federation Account first. NNPC gets a budget allocation like every other agency.

State governments have been screaming about FAAC shortfalls for two years. Part of the reason allocations have been smaller than expected is that NNPC was skimming off the top before distribution.

The same week this order was signed, NNPC announced plans to increase gas supply to 1.8 billion cubic feet per day. Two headlines, one admission: the company retaining revenue wasn't delivering energy either.

Revenue leak on one side. Delivery failure on the other. The order fixes the first. Nobody's fixed the second yet.

The PIA that created this arrangement passed in 2021. The architecture wasn't hidden. A reform arriving in February 2026 is better than no reform. But the gap between visibility and action cost the federation real money, and nobody's explaining where it went.