President Bola Tinubu has directed that all oil and gas revenues be paid directly into Nigeria’s federation account. This policy ends previous arrangements that allowed agencies such as the national oil company and regulators to retain portions of proceeds for operations and exploration. The reform seeks to address revenue shortfalls affecting federal, state, and local government allocations. It also introduces a system where these agencies will instead receive budgeted management fees approved through government appropriations. Analysts say the move could increase fiscal transparency and strengthen public finance management, though it may create short term operational funding adjustments for petroleum sector agencies. �

Reuters

Source: Reuters, February 18, 2026.