NUPRC, NNPC Fears Financial Strain After Tinubu’s Order
Fresh tension has emerged within Nigeria’s oil and gas sector after President Bola Tinubu ordered the immediate remittance of key oil and gas revenues to the Federation Account for sharing among the three tiers of government.
The directive affects agencies including the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian National Petroleum Company Limited.
Officials within the affected agencies say the move has created uncertainty over how operations will be funded, especially as some internally generated revenues will no longer be retained.
They argue that returning to traditional budget allocations could slow decisions, weaken oversight, and expose regulators to delays at a time when Nigeria is pushing to raise crude output and attract new investment.
At NNPC, some senior figures warn the order could disrupt production sharing contract arrangements and create fresh concerns among investors, particularly in the deepwater segment.
Questions have also been raised about how crude-backed loans and existing financial commitments will be managed if revenue flows change without clear guidance.
However, marketers and some government officials have backed the decision, saying it will improve transparency and strengthen fiscal discipline.
Labour unions and industry experts are calling for urgent consultations, warning that funding instability and policy uncertainty could affect jobs, investor confidence, and the broader stability of the petroleum sector.
