Knocks, kudos greet Tinubu’s revenue reform in Nigeria’s energy sector

* Executive Order will boost accountability, investors’ confidence – Oil marketers 

*Order could weaken NNPCL, discourage investors – PENGASSAN 

Mixed reactions have continued to trail President Bola Tinubu’s Executive Order No. 9 of February 13, 2026 which aimed at strengthening fiscal discipline and promoting transparency in Nigeria’s oil and gas revenue management.

While some industry stakeholders praised the presidential intervention, others condemned it, calling it anti-industry.

President Bola Tinubu had signed the Executive Order No. 9 of 2026 on February 13 to strengthen fiscal discipline and promote transparency in Nigeria’s oil and gas revenue management.

The Executive Order directs that all oil and gas revenues due to the federation, including royalty oil, tax oil, profit oil, and profit gas, be paid directly into the Federation Account.

It also suspends certain revenue retention mechanisms under the Petroleum Industry Act (PIA) 2021, including the 30 per cent Frontier Exploration Fund, 30 per cent NNPC Ltd. management fee on profit oil and profit gas.

It also includes the redirection of gas flare penalties to the Federation Account.

While speaking on the matter, oil marketers under the aegis of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), welcomed the Executive Order No. 9 as a reform-driven step to boost accountability and investors’ confidence in Nigeria’s energy sector.

The National President of PETROAN, Dr. Billy Gillis-Harry, who spoke on behalf of members on Saturday, said the order, which compelled the Nigerian National Petroleum Company Limited (NNPC Ltd.) to remit revenues directly to the Federation Account, aligned with global best practices and would reinforced NNPC’s transformation into a commercially disciplined company.

Gillis-Harry argued that transparent revenue management was critical to improving Nigeria’s economic credibility and attractiveness to both local and foreign investors.

He described the executive order as a courageous decision that strengthens accountability while deepening reforms within the oil and gas industry.

The PETROAN president also commended the Group Chief Executive Officer, NNPC Ltd., Mr. Bayo Ojulari, for his proactive efforts to revive the Port Harcourt Refinery, particularly during a recent inspection engagement with a Chinese technical firm.

Positive for Market

He endorsed the proposal to adopt the governance structure of Nigeria Liquefied Natural Gas Limited (NLNG) for the Port Harcourt Refinery, noting that the NLNG Bonny model has proven effective in promoting operational efficiency, transparency, and private-sector discipline.

He emphasised that replicating a commercially driven governance model similar to NLNG would enhance the long-term productivity and global competitiveness of Nigeria’s refineries.

Such reforms, he said, would strengthen energy security, reduce dependence on fuel imports, and position the downstream sector for sustainable growth.

In the same vein, the Capital Market Academics of Nigeria (CMAN) described the Executive Order as one of the most courageous reforms of Tinubu’s administration.

Speaking in Abuja over the weekend, CMAN’s President, Prof. Uche Uwaleke, said the move was a step towards strengthening fiscal transparency and achieving equity in revenue distribution, ensuring that all tiers of government benefitted equitably from the country’s oil and gas wealth.

He described the development as a victory for the Federation Accounts Allocation Committee and for fiscal justice in the country.

According to him, it will significantly boost revenues available to all tiers of government, thereby enhancing their capacity to deliver services to the people, generate economic activities and boost the capital markets.

”Since 2021 when the Petroleum Industry Act (PIA) was implemented, the Federation Account shared by the federal, state, and local governments, received only 40 per cent of these proceeds.

”While the Nigerian National Petroleum Company Ltd. (NNPCL) retained 60 per cent through the Frontier Exploration Fund (30 per cent) under their expenditure oversight and a management fee of 30 per cent.

”This imbalance undermined the principle of collective ownership of national resources.

”By correcting this anomaly, the President has ensured that all tiers of government benefit equitably from the nation’s oil and gas wealth”, he said.

Uwaleke suggested that the reform process must continue, particularly with regards to the Joint Venture assets, noting that it should also be returned to the Federation Account.

However, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), faulted the president’s Executive Order.

PENGASSAN President, Mr. Festus Osifo, who spoke in Lagos at the weekend, noted that the Executive Order was introduced without broad consultation with key industry stakeholders, heightening concerns about transparency and regulatory certainty Osifo claimed that the Order could weaken the Nigerian National Petroleum Company Limited (NNPCL), discourage investors and ultimately affect ordinary Nigerians.

“We were not adequately consulted. When policies of this magnitude are introduced without engagement, it creates uncertainty, and uncertainty is the enemy of investment”, he said.

The PENGASSAN president expressed concern about what he described as increasing political interference in NNPCL’s operations, warning that excessive control could undermine professional management.

He said the company had seasoned professionals who understood the industry’s technical and commercial dynamics.

“But when political considerations override professional judgement, efficiency suffers”, Osifo said.

NUPENG also expressed reservations over the order, and in has asked for a stakeholders’ meeting to address concerns.