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FG Approves Transition for Direct Oil Revenue Remittance to Federation Account

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By Yusuf Danjuma Yunusa

In a decisive move to enhance transparency and curb revenue leakages in the petroleum sector, the Nigerian Government has approved a transition period for oil companies to begin remitting revenues directly into the Federation Account. This directive is a core component of Executive Order 9, recently signed by President Bola Ahmed Tinubu.

The decision was formalized during the inaugural meeting of the Implementation Committee on Executive Order 9, held on February 26, 2026.

In a statement released on Monday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who chairs the committee, announced the approval of a transition arrangement. He emphasized that this measured approach is designed to prevent any disruption to existing contractual and financing obligations within the oil industry.

The policy’s primary objective is to mandate the direct payment of all revenues from petroleum operations—including profit oil, royalty oil, and tax oil—into the Federation Account. This measure is intended to strengthen public finance management and ensure a more equitable distribution of resources across all three tiers of government (federal, state, and local).

Minister Edun explained that while the government is committed to enforcing the new payment structure, the committee agreed that a cautious implementation is vital to preserving investor confidence.

“With respect to Section 2, Sub-section 3 of Executive Order 9 on direct payments by contractors into the Federation Account, the Implementation Committee agreed that this transition must be implemented in a manner that respects existing contractual and financing arrangements and maintains investor confidence,” he stated.

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He further clarified that a defined transition period has been approved before the new remittance system becomes fully operational. Until detailed guidelines are released by the committee, existing payment processes will remain in place.

“Until the Committee issues detailed guidelines, contractors will continue to remit under the current process. During the transition period, the Committee will issue clear, standardised guidance to ensure an orderly changeover,” Mr. Edun added.

To operationalize the directive, the committee has established a technical subcommittee tasked with developing a comprehensive implementation framework within three weeks. This subcommittee will also conduct a review of the Petroleum Industry Act (PIA) to identify structural and fiscal provisions that may be weakening government revenues from petroleum operations.

“The Technical Subcommittee will develop the detailed guidelines for the transition to direct remittance within three weeks and commence a review of the Petroleum Industry Act to address structural and fiscal anomalies that weaken Federation revenues,” Mr. Edun said.

The panel will be chaired by the Special Adviser to the President on Energy, Mrs. Olu Verheijen. Its members include senior officials from the Office of the Solicitor-General of the Federation, the Federal Ministry of Justice, the Nigeria Revenue Service, the Forum of Commissioners of Finance, and representatives of the Minister of State for Petroleum Resources (Oil). The Budget Office of the Federation will serve as its secretariat.

As an immediate part of the reforms under Executive Order 9, the government has directed NNPC Limited to halt certain deductions under Production Sharing Contracts.

According to the committee, NNPC Limited is to immediately stop collecting a 30 per cent management fee and a 30 per cent frontier exploration fund deduction from profit oil and profit gas. Furthermore, the remittance of all gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund has been suspended with immediate effect.

The implementation committee reaffirmed that these sweeping reforms are designed to guarantee that all revenues generated from Nigeria’s oil and gas resources are fully accounted for and paid into the Federation Account, in strict adherence to constitutional provisions.

“The Committee reaffirmed the President’s directive that revenues accruing to the Federation from petroleum operations must be handled in a manner that upholds constitutional principles, protects revenues accruable to the Federation and supports the fiscal stability of all three tiers of government,” the statement concluded.

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Dangote Cement Obajana Graduates 40 In Fish Farming, Entrepreneurship

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Dangote Cement Plc, Obajana, has graduated no fewer than 40 participants from its host communities following a comprehensive training programme in fish farming and entrepreneurship.

The ceremony was attended by representatives of the Federal Government, the Kogi State Government, Industrial Training Fund (ITF), as well as traditional rulers and other key stakeholders.

The beneficiaries, mostly women, were drawn from the host communities of Iwaa, Oyo, Obajana and Apata.

This scheme builds on a series of previous community empowerment programmes, including training in poultry production, solar entrepreneurship, and fashion design, among others.

The Plant Director, Azad Nawabuddin, described the skills acquisition programme as a strategic scheme aimed at promoting job creation and driving overall economic development within the host communities.

Engr. Nawabuddin said: “In learning the art and business of fish farming, you have embraced a cycle of life that teaches responsibility. You nurture, you wait, you adapt, and in time, you harvest. This mirrors the journey of community development itself: it is not built in a day, but through consistent effort, shared knowledge, and collective commitment.”

According to him, fish farming does not stand alone. It creates ripples by providing food for families, income for households, and opportunities for others.

‘One fishpond can support a network: feed suppliers, transporters, market women, and processors. In this way, what begins as an individual skill becomes a communal asset,” he added.

Also speaking to newsmen on the sideline of the graduation ceremony, he said: “When a community feeds itself, it strengthens not only its economy but its sense of identity and pride.”

Speaking at the event, General Manager and Head of the Social Performance Department at Dangote Cement Plc, Obajana, Prince Ademola Adeyemi, said the event was part of the Corporate Social Responsibility(CSR) Scheme of the company.

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He said: “We don’t Lord ourself on the communities. We jointly agree to carry out this CSR programme. We invest proactively in skills, in people, and in ideas that can uplift communities. Through partnerships like the one we have with the Industrial Training Fund, we ensure that our interventions are not just well-intentioned, but impactful and sustainable.”

Prince Adeyemi said the fish farming skill will reduce dependence on white collar or company job and replaces it with self-sufficiency.

He said: “At Dangote Cement Plc, we remain steadfast in our commitment to being not just a business, but a responsible partner in progress, dedicated to the growth, stability, and prosperity of our host communities.”

Representative of the Technical Adviser on CSR to the Kogi State Governor, Hon. Akinola Oluropo Babatunde, commended the President of Dangote Group, Aliko Dangote, for his support for communities in Kogi State.

Mr. Babatunde urged beneficiaries to make proper use of the opportunity, and impact positively on their communities.

“We are proud of Alhaji Aliko Dangote. We are proud of his managers at Obajana,” he said.

Representative of the Executive Chairman of the Lokoja Local Government, Hon. Abubakar Muhammad, said the Council will continue to partner with the company in ensuring the sustainability of the peaceful co-existence between the company and host communities.

Hon. Muhammad, who is the Secretary of the Lokoja Local Government Council, said government can only succeed when it collaborates with critical stakeholders like the Dangote Cement Plc.

In his remarks, the Bajana of Obajana, HRH Idowu Isenibi, said: “Let this not end here. As you grow, carry others along. Teach your brothers, support your sisters, and build enterprises that will uplift our communities. In unity, we find strength; and in enterprise, we secure our future.

“We assure Dangote Cement Plc and the Industrial Training Fund of our continued support and cooperation. Together, we shall build communities that are peaceful, productive, and prosperous.”

The Elesho of Iwaa, HRH, Abel Alade, said: “Today, my heart is filled with joy. What we are witnessing is not just the graduation of 40 individuals, but the planting of seeds that will grow into prosperity for our people. In our tradition, we say that when you teach a man how to provide for himself, you give strength not only to him, but to his entire household, and indeed, to the whole community.”

Mines Environmental Compliance Officer of the Federal Ministry of Solid Minerals Development, Kogi State, Engr. Olaitan Olufemi, commended the company, adding that it has performed excellently in Corporate Social Responsibility.”

The Area Manager of the Industrial Training Fund, Lokoja Area Office, Bajeh Thomas, stated that the company also provided the graduating participants with starter juvenile and feed to support the launch of their fish farming enterprises.

Mr. Thomas said the ITF will follow-up to ensure that training achieves the desired result.

Speaking on behalf of the graduating students, Mrs Regina Idowu, described the training as a life changing experience, even as she thanked the company for the opportunity.

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Governors Submit State Police Proposal to NSA

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By Yusuf Danjuma Yunusa

The Nigeria Governors’ Forum (NGF) has submitted its input on the proposed state police framework to the National Security Adviser (NSA), Mallam Nuhu Ribadu, with the document now expected to be transmitted to the National Assembly.

The NGF Chairman and Kwara State Governor, Abdulrahman AbdulRazaq, disclosed this on Sunday following a meeting with President Bola Tinubu at his Ikoyi residence in Lagos.

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AbdulRazaq explained that deliberations on state police are ongoing, led by the NSA and involving various security organizations, with the governors’ forum having now contributed its recommendations. “That document will be taken to the National Assembly to see how we can have a legislative framework for state police,” he said.

The governor also reaffirmed the commitment of state chief executives to strengthening collaboration with security agencies. “As governors, we commit to renew our collaboration with security forces to defeat terrorism steadily, expand infrastructure opportunities, and improve the lives of our people,” AbdulRazaq stated.

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Persistent Insurgency in Borno: A Security Analyst Speaks on Military Sacrifices and Government Response”

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“Persistent Insurgency in Borno: A Security Analyst Speaks on Military Sacrifices and Government Response”

 

Interview with Abbas Yushau Yusuf
Featuring Security Analyst and Retired Captain Abdullahi Bakoji Adamu

 

In this interview, retired captain and security analyst Abdullahi Bakoji Adamu sheds light on the tragic killing of soldiers in Borno.

What is your perspective on this incident?

Adamu: I can say the killing of soldiers in Borno is a tragic reminder of the persistent security challenges in the region. At this moment, such attacks are often driven by renewed insurgent regrouping, attempts to assert dominance, and exploit gaps in intelligence or security coordination.

It may also be linked to increased military pressure on insurgents, pushing them to retaliate, as well as the use of asymmetric tactics like ambushes.

This situation highlights the urgent need for stronger intelligence gathering, improved equipment, better inter-agency coordination, and enhanced welfare for troops on the Frontline. Their sacrifice must not be in vain—there must be a renewed, strategic, and sustained effort by all stakeholders to end insurgency and restore lasting peace in the Northeast.

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But losing senior officers like that—isn’t it a failure on the part of the Nigerian military?

Adamu: Well losing senior officers in such attacks is deeply concerning and raises serious operational questions, but it should not be viewed in isolation as outright failure of the military.

Modern insurgencies, especially asymmetric warfare like in Borno, are unpredictable and often target high-value personnel to create psychological impact and gain propaganda advantage. Senior officers sometimes move close to the frontlines to boost morale and supervise operations, which can increase their exposure to risk.

However, incidents like this do point to possible gaps in intelligence, force protection, movement protocols, or coordination that must be critically reviewed. It underscores the need for stronger surveillance, better risk assessment, and stricter operational security when deploying high-ranking officers.

So, rather than labeling it simply as failure, it is more accurate to see it as a serious setback and a signal for the Nigerian military to reassess and strengthen its strategies, protection measures, and intelligence systems to prevent a recurrence.

But experts say when insecurity persists for many years, like the Northeastern insurgency, it shows the government is not serious. We are now in the 17th year—remember it started in 2009?

Adamu: Yes of course many experts argue that when insecurity persists for so many years, it raises legitimate concerns about the level of seriousness, consistency, and effectiveness of government response.

Seventeen years after the insurgency began in 2009, the continued attacks suggest that beyond military action, there have been gaps in strategy, coordination, and long-term planning. Prolonged conflicts like this often point to deeper issues such as weak intelligence systems, insufficient political will at critical moments, poor continuity of policies, and limited focus on root causes like poverty, governance, and community engagement.

While there have been undeniable efforts and sacrifices by the military, the duration of the crisis indicates that more decisive, well-coordinated, and sustained actions are needed. Ending such insurgency requires not just force, but a comprehensive approach that combines security operations with development, justice, and strong institutional accountability.

 

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