Following President Bola Tinubu’s Executive Order mandating the direct remittance of all oil and gas revenues into the Federation Account without direct deductions, the federal government has commenced moves to investigate past revenue collections and recover any outstanding sums, THISDAY has learnt.

THISDAY gathered that the federal government had directed agencies, including the Nigerian National Petroleum Company Limited (NNPC Limited), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), among others, to provide full financial records and cooperate with the upcoming review.

This comes as NNPC Limited and Dangote Refinery have renewed their strategic alliance to enhance Nigeria’s energy security.

According to a document signed by the Minister of State for Finance and Chairman of the Federation Account Allocation Committee (FAAC), Dr. Doris Uzoka-Anite, which THISDAY sighted yesterday, the minister reminded the agencies of the federal government’s directive to cease deductions and off-budget retentions from petroleum revenues immediately.

Uzoka-Anite’s letter to the concerned agencies was titled: “Implementation of Presidential Executive Order on Safeguarding Federation Oil and Gas Revenues and Providing Regulatory Clarity- Immediate Remittance Directive and Retrospective Audit.”

The executive order reinforced Section 162 of the Constitution, requiring that all revenues accruing to the Federation be paid into the Federation Account without deduction.

“I write to request that all revenues accruing to the Federation must be paid into the Federation Account without deduction. Accordingly, the following directives take immediate effect:

“Immediate cessation of deductions and retention. All institutions and operators are hereby directed to: Cease collection and management of the 30 per cent allocation to the Frontier Exploration Fund (FEF); suspend payment and retention of the 30 per cent management fee on profit oil and profit gas revenues previously payable to NNPC Limited.

“(And) Cease payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF); discontinue all forms of off-budget allocations and administrative deductions inconsistent with the Executive Order,” the minister directed in the letter.

According to the minister, all profit oil, profit gas, royalty oil, tax oil, gas flare penalties, and any other petroleum-related revenue streams due to the Federation shall be remitted directly into a designated Sub-Federation Account to be managed by the Office of the Accountant-General of the Federation pending FAAC distribution.

“No institution shall retain, net off, or deduct funds before remittance. Transfer all outstanding balances relating to the above available in any commercial bank or Central Bank Account into the Sub-Federation Account (when provided). Detailed remittance guidelines shall be issued separately by the Office of the Accountant-General,” she explained.

Beyond the immediate remittance requirement, most critically, the federal government also commissioned a retrospective audit covering three major areas.

First, the Frontier Exploration Fund was established under the Petroleum Industry Act (PIA). The audit will examine total collections since inception, expenditures and commitments undertaken, and current balances and investment placements.

Second is the Midstream and Downstream Gas Infrastructure Fund, where the review will focus on gas flare penalties collected, transfers and utilisation, and compliance with procurement regulations.

Also in focus is the 30 per cent management fee previously deducted by NNPC from profit oil and gas revenues.

The audit will assess total deductions made, utilisation of retained funds, and outstanding balances that may be due to the Federation.

Besides, all concerned entities, including NNPC, NUPRC, NMDPRA, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigeria Revenue Service (NRS), oil contractors, as well as oil and gas operators, have been directed to provide full financial records, documentation, and unrestricted access to audit teams.

“A comprehensive retrospective audit is hereby commissioned covering: Frontier Exploration Fund, (including) total collections since inception under the Petroleum Industry Act; expenditures and commitments; current balances and investment placements.

“Midstream and Downstream Gas Infrastructure Fund, (including) gas flare penalties collected; transfers and utilisation; compliance with procurement regulations. NNPC 30 per cent management fees; total deductions made; utilisation of retained funds; outstanding balances due to the Federation.”

According to the document, where audit findings reveal outstanding sums due to the Federation, the federal government insisted that immediate restitution into the proposed Sub-Federation Account will be required.

The ministry further mandated that weekly remittance reports be submitted to the office of the Minister of State for Finance, warning that any breach of the directive would constitute a violation of a lawful executive order and of constitutional fiscal provisions.

“All affected entities are required to provide full financial records, documentation, and access to audit teams. Where audit findings reveal outstanding sums due to the Federation, immediate restitution into the Sub-Federation Account shall be required.

Weekly remittance reports must be submitted to the office of the Minister for State, Finance. Any breach of this directive shall be treated as a violation of a lawful executive order and constitutional fiscal provisions,” the document noted.

NNPC, Dangote Refinery Renew Strategic Alliance

Meanwhile, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, yesterday led a delegation of the company’s management to the Dangote Refinery and Petrochemical Complex in Ibeju-Lekki, Lagos State, for high-level discussions that culminated in a renewed commitment to strategic collaboration between the two companies.

The visit, which Included a facility tour, focused on strengthening operational and commercial relationships between NNPC Limited and the Dangote Refinery, with both organisations reaffirming their shared vision for Nigeria’s energy future.

In a statement signed by NNPC’s Chief Corporate Communications Officer, Andy Odeh, Ojulari commended the President of the Dangote Group, Alhaji Aliko Dangote, for his vision and perseverance in delivering the 650,000 barrels per day refinery, a project that positions Nigeria as a major downstream hub in Africa.

Speaking on the partnership, Ojulari described the strategic alliance as one that will “unlock synergies across assets, infrastructure, capital, and markets. It will also provide visibility of all NNPC-Dangote business relations.”

He further revealed the collaboration’s expansive potential, noting a significant opportunity for both companies to expand upstream and into trading, shipping, and gas supplies, among other areas.

Ojulari expressed profound appreciation to President Bola Ahmed Tinubu for his visionary leadership in the oil and gas sector.

He noted that the President’s policy clarity, investor-friendly reforms, and commitment to sectoral transformation had signalled seriousness to both domestic and international investors, creating an enabling environment for partnerships of this scale to flourish.

The statement quoted the Chairman of Dangote Group, Aliko Dangote, as saying, “Nigerians will be the beneficiaries of the synergy between Dangote Group and NNPC Limited, because our collaboration will achieve economies of scale and unlock value across markets.”

The visit concluded with both parties reaffirming their commitment to deepening cooperation to pursue shared objectives, ensure energy security, drive industrial growth, and deliver value to Nigerians.

NNPC currently holds a 7.25 per cent stake in the Dangote Refinery.

The shareholding is considered a strategic investment that aligns with NNPC’s downstream growth objectives and its commitment to domestic refining capacity. (THISDAY)

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