Connect with us

News

FG Approves Transition for Direct Oil Revenue Remittance to Federation Account

Published

on

 

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.

Advert

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.

News

Kano Approves ₦61.6bn Development Package to Boost Education, Healthcare, Infrastructure

Published

on

 

The Kano State Executive Council has approved a total of ₦61.63 billion for a broad range of development projects spanning education, healthcare, infrastructure, agriculture, and urban renewal.

The approvals were granted during the Council’s 39th meeting held at the Government House in Kano.
Briefing journalists after the meeting, the Commissioner for Information and Internal Affairs, Ibrahim Abdullahi Waiya, said the decisions reflect the administration’s strong commitment to improving public services and accelerating socio-economic development across the state.

According to him, the approvals followed extensive deliberations on key governance priorities, with a clear focus on enhancing living standards and expanding access to essential services.

Education Sector Gets Major Boost
A significant share of the funds was allocated to the education sector. This includes over ₦4.45 billion for the payment of external examination fees for students sitting for NECO, NABTEB, and NBAIS in 2026.

The Council also approved ₦2 billion for the procurement of school furniture across 30 local government areas, alongside several projects involving classroom construction, renovation, and upgrades in schools located in Makoda, Tarauni, Ajingi, and Minjibir LGAs.
Waiya added that funds were equally approved to settle outstanding liabilities for examination fees between 2020 and 2023, as well as feeding costs in boarding schools.

Strengthening Healthcare Services
In the health sector, the Council approved key interventions, including the renovation of Wudil General Hospital and the procurement of medical equipment for major hospitals.

Advert

Other approvals cover routine immunisation programmes, polio outbreak response across all 44 LGAs, and funding for free maternal, neonatal, and child healthcare services in 484 primary healthcare centres.

Major Infrastructure Investments
On infrastructure, over ₦5.2 billion was approved for the construction of a major road linking Panshekara Underpass to Madobi Bridge, as well as road reconstruction projects in Gwale LGA.
Additional approvals include the renovation of government offices, upgrades at the NYSC orientation camp in Kusalla, and construction works at other key public facilities.

Agriculture, Water, and Environment
To boost agricultural productivity, the Council approved nearly ₦3.5 billion for the procurement of over 41,000 bags of fertiliser, alongside investments in irrigation and institutional infrastructure.
In the water sector, ₦3.48 billion was approved for the rehabilitation of the Tamburawa Water Treatment Plant, in addition to funding for boreholes and utility services.
Environmental initiatives such as urban beautification, solar-powered boreholes, and drainage improvements also received funding.
Urban Development and Digital Mapping
The Council also earmarked substantial funds for urban development, including compensation for land acquisition, road projects, and the establishment of Gaya Polytechnic.
It further approved multi-billion naira projects for street naming, mapping, and house numbering under Phase II of the state’s urban planning programme.
Other Strategic Interventions
Additional approvals include funding for special intervention projects across 15 LGAs, settlement of staff entitlements at Aliko Dangote University, and procurement of ICT equipment to enhance government communication.
The Council also endorsed programmes aimed at economic empowerment, including support for butchers and logistics for Hajj operations.
Government Reaffirms Commitment
Waiya assured residents that all projects would be executed in line with due process and accountability.
He reiterated that the administration remains focused on delivering tangible dividends of democracy to the people of Kano State.

“The approvals underscore government’s unwavering commitment to improving infrastructure, education, healthcare, and overall socio-economic development of Kano State,” he said.
He added that the Council also acknowledged recent recognitions and awards received by the governor, noting that they reflect the impact of ongoing reforms and leadership direction.

Continue Reading

News

Workers Day: Akpabio Promises Workers Living Wage

Published

on

 

By Yusuf Danjuma Yunusa

The President of the Senate, Senator Godswill Akpabio, on Friday assured Nigerian workers that the National Assembly is aware of their economic challenges and remains committed to improving their welfare through legislative measures.

The former Akwa Ibom State governor gave the assurance in a congratulatory message to mark the 2026 International Workers’ Day, issued in Abuja by his Special Adviser on Media and Publicity, Eseme Eyiboh.

Akpabio acknowledged the difficulties faced by workers and pledged the Senate’s continued intervention through legislation aimed at improving living conditions and workplace standards.

He said, “The 10th National Assembly recognises the challenges workers face, from rising costs of living to workplace demands.

Advert

“I assure you that the Senate remains unwavering in its commitment to legislating for a living wage, safer workplaces, pension reforms, and policies that expand job creation and protect the dignity of labour.

“The passage of the new National Minimum Wage Act and the implementation of workers’ welfare packages are testaments to this commitment.”

His message comes against the backdrop of mounting economic pressures on Nigerian workers, including rising inflation, the high cost of living, and concerns over wage sustainability, which have continued to dominate national discourse.

The Senate President also called on employers across sectors to prioritise workers’ welfare, stressing the link between productivity and improved working conditions.

“Today, we celebrate you—the teachers who mould our future, the farmers who feed our nation, the doctors and nurses who heal our land, the artisans, traders, civil servants, security personnel, and private sector employees whose daily toil builds Nigeria.

“You are the true heroes of our democracy and the engine of our economy.

“To organised labour, I commend your constructive engagements and patriotism. The Senate will continue to partner with the NLC, TUC and all affiliates to ensure that the voice of the Nigerian worker is heard and respected in the chambers of policy and law,” he stated.

Continue Reading

News

Workers’ Day: Hardship Worsening Under Tinubu, Says Atiku

Published

on

 

 

By Yusuf Danjuma Yunusa

Former Vice-President Atiku Abubakar has lamented the worsening economic hardship Nigerian workers face under President Bola Tinubu’s watch.

Mr Abubakar also said Mr Tinubu’s campaign mantra of ‘Renewed Hope’ has failed to translate into tangible relief for Nigeria’s citizens.

In a message on Friday to mark Workers’ Day, Mr Abubakar said, “Every first day of May, nations across the world pause to honour the dignity of labour and the men and women whose sweat and toil sustain civilisation. In Nigeria, Workers’ Day has always carried a particular poignancy, a moment to celebrate the resilience of a workforce that endures much and receives little.

Advert

“But as we mark this year’s commemoration, I write not with celebration in my heart, but with grief. Grief for the Nigerian worker who was promised renewed hope and received instead renewed hardship.”

The former vice-president added, “The Nigerian worker, the teacher, the nurse, the factory hand, the civil servant, the artisan, has been the primary victim of an administration that, by all observable evidence, is far more interested in increasing the revenue at its disposal than in improving the lives of the citizens it governs.”

However, he acknowledged that the removal of fuel subsidy by Mr Tinubu was a necessary reform but faulted the manner in which the policy was implemented.

“A responsible government would have spent the preceding months preparing Nigerians for this transition, establishing social safety nets, empowering the most vulnerable, and ensuring that the pain of reform was shared equitably. This administration did none of that. It simply removed the subsidy and left the Nigerian worker to drown,” the opposition figure explained.

Mr Abubakar called on the government to prioritise policies that directly improve the welfare of Nigerian workers, including social safety nets, wage adjustments, and targeted economic interventions, pointing out that the Nigerian worker “deserves genuine renewal, not the Orwellian version. A renewal that is tangible, measurable and real. Not as a slogan. But as a lived reality.”

Continue Reading

Trending