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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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President Tinubu Names New Petroleum Institute After Late Gen Shehu Musa Yar’adua

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By Yusuf Danjuma Yunusa

President Bola Tinubu has approved the establishment of a new university in Kaduna State and named it after Late General Shehu Musa Yar’Adua, to the honour the former Chief of  Staff Supreme Headquarters (equivalent to Vice President)as part of activities marking Nigeria’s 2026 Democracy Day celebration on June 12.

The President announced the decision on Friday during his Democracy Day nationwide broadcast that the Federal Government had approved the revitalisation and renaming of the completed Institute of Petroleum Studies, Kaduna, as the General Shehu Musa Yar’Adua University of Geological Sciences and Engineering Technology.

Tinubu said the decision was taken in recognition of Yar’Adua’s contributions to Nigeria’s democratic development and his vision of national unity and partnership.

The late General Shehu Musa Yar’Adua, an older brother of late President Umaru Musa Yar’Adua, was one of the political gladiators in the aborted Third Republic and advocate of June 12, 1993 presidential election actualisation.

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“Among the architects of modern democratic Nigeria, we honour General Shehu Musa Yar’Adua for his vision of national partnership,” the President said.

“In recognition of his contributions, the Federal Government has approved the revitalisation and renaming of the completed Institute of Petroleum Studies, Kaduna, as the General Shehu Musa Yar’Adua University of Geological Sciences and Engineering Technology,” Tinubu declared.

The President paid tribute to other prominent figures, living and dead, who played significant roles in Nigeria’s struggle for democracy.

He described June 12 as a defining moment in Nigeria’s history and remembered several heroes of the democratic movement, including late Shehu Musa Yar’Adua, whom he said helped lay the foundation for the freedoms Nigerians enjoy today.

Tinubu noted that the country owed a debt of gratitude to patriots who endured persecution, imprisonment, exile and even death in the fight for democratic governance.

He also announced national honours for dozens of pro-democracy activists, journalists, lawyers, politicians and military officers who, according to him, suffered persecution and incarceration during the struggle to restore democratic rule in Nigeria.

Among those recognised were Arthur Nwankwo, Mrs Joe Okei-Odumakin, Richard Akinnola, Ishola Williams and several military officers who participated in the June 12 democratic struggle.

Tinubu said the full honours list would be released in the coming days.

Reflecting on Nigeria’s democratic journey, the President said the country has enjoyed 27 uninterrupted years of civilian rule since 1999, describing it as the longest stretch of democratic governance in the nation’s history.

He urged Nigerians to remain united and committed to strengthening democratic institutions, stressing that the sacrifices of the nation’s heroes must not be in vain.

“The generation of our founding fathers secured independence the generation of June 12 secured democracy. Our generation must secure prosperity,” Tinubu said.

The President expressed optimism about Nigeria’s future, saying democracy must translate into improved living standards, economic opportunities and security for all citizens.

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We Could Only Watch Helplessly’ — Kano Traders Recount Horror of Market Inferno

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A fire incident has destroyed a popular home appliances and office furniture market located along Murtala Mohammed Way in Kano, leaving traders counting losses running into millions of naira.

It was gathered that the fire broke out at about 10:00 p.m. on Thursday and rapidly spread across the market, engulfing shops and their contents before firefighters could bring the situation under control.

Eyewitnesses said the fire consumed a large section of the market, reducing valuable goods and property to ashes.

One of the affected traders, who spoke to newsmen, described the incident as a major disaster for business owners operating in the market.

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According to him, the fire completely gutted several shops, destroying goods worth millions of naira.

“The cause of the fire is yet to be determined. We could only watch helplessly as officials of the Kano State Fire Service battled to contain the inferno,” the trader said.

He further disclosed that the fire extended to a nearby building occupied by the international courier company, DHL, where part of the roof was damaged by the flames.

The affected market, located between the DHL office and First City Monument Bank (FCMB) along Murtala Mohammed Way, is widely known for the sale of household and office furnishing items, including furniture, carpets, air conditioners, refrigerators, mattresses, televisions and other interior decoration materials.

As of the time of filing this report, the exact cause of the fire had not been officially established, while authorities were yet to provide an estimate of the total value of property destroyed.

Traders affected by the incident have appealed to the government and relevant authorities for support as they begin to assess the extent of their losses and rebuild their businesses.

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Northern Youths Hail National Assembly’s Approval of State Police, Describe Move as Landmark Security Reform

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The Northern Youth Assembly (NYA) has commended the National Assembly for its approval of the constitutional amendment bill seeking to establish State Police across Nigeria, describing the development as a landmark step toward addressing the country’s persistent security challenges.

In a statement signed by its Secretary General, Abdulhafiz Garba, the group said the overwhelming support for the bill by federal lawmakers reflects a growing national consensus on the need to strengthen security through a more decentralized and community-focused policing system.

According to the assembly, the endorsement of the bill by 289 legislators, with only four voting against it, demonstrates the urgency attached to security reforms and the recognition that local communities must play a more active role in maintaining peace and order.

The group noted that insecurity has remained one of the most pressing concerns across Northern Nigeria, where communities have grappled with banditry, kidnapping, terrorism, cattle rustling, and communal conflicts. These challenges, it said, have disrupted economic activities, displaced families, and undermined social stability across the region.

The NYA argued that while officers of the Nigeria Police Force have continued to make sacrifices in the line of duty, the existing centralized policing structure has struggled to adequately respond to the country’s complex and evolving security threats due to Nigeria’s vast population and geographical size.

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It maintained that the creation of State Police would provide an additional layer of security by enabling state governments to establish law enforcement agencies capable of responding swiftly to local challenges while complementing federal security institutions.

The assembly highlighted intelligence gathering as one of the major advantages of the proposed reform. It explained that security personnel recruited from local communities would possess deeper knowledge of the language, culture, terrain, and social environment of their states, making it easier to detect criminal activities and prevent threats before they escalate.

The group further stated that decentralized policing would improve emergency response times, as state-controlled police formations would be able to act promptly without waiting for instructions from distant command structures.

Beyond security, the Northern Youth Assembly said the reform could create significant employment opportunities for young people. It noted that recruitment into state police services would provide jobs for thousands of youths while helping to reduce unemployment and strengthen community engagement.

According to the organization, improved security would also encourage investment, boost agricultural production, revive local economies, and facilitate safer movement of goods and people across Northern Nigeria.

The group pointed to several countries operating successful decentralized policing systems, including the United States, Canada, Australia, and Germany. It argued that these examples demonstrate that state-based policing structures can coexist with federal law enforcement agencies without undermining national unity.

Rather than weakening the federation, the assembly said decentralized policing has proven effective in enhancing accountability, improving public safety, and ensuring more responsive governance in many democratic nations.

Describing the passage of the bill as a historic moment, the NYA said the reform offers renewed hope for communities affected by insecurity and represents a significant step toward building a safer and more prosperous Nigeria.

The organization pledged its continued support for policies aimed at promoting peace, security, youth empowerment, economic development, and national unity, while urging relevant stakeholders to ensure the successful implementation of the proposed State Police framework once it becomes law.

 

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