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Revised Executive Order: FG quietly adjusts oil revenue remittance framework, see details

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The Federal Government has quietly revised the implementation framework of Executive Order 9 of 2026 on oil revenue remittances, with royalties and taxes to remain under the collection of the Nigerian National Petroleum Company Limited and paid into a newly created account domiciled at the Central Bank of Nigeria, The PUNCH exclusively gathered on Monday.

The adjustment follows high-level deliberations at an implementation committee meeting held last Wednesday, where stakeholders examined practical challenges linked to the order mandating direct remittance of all oil-related revenues into the Federation Account.

Two senior officials involved in the talks, who spoke on condition of anonymity because they were not authorised to comment publicly, said the government was unlikely to rescind the directive but had begun modifying its execution to reflect industry realities.

Last month, President Bola Tinubu issued an executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and discontinued the 30 per cent management fee on profit oil and profit gas retained by the NNPC. Effective February 13, 2026, the directive is intended to safeguard oil and gas revenues and strengthen remittances to the Federation Account.

According to the directive, the President invoked Section 5 of the Constitution of the Federal Republic of Nigeria (as amended), anchored on Section 44(3), which vests ownership and control of all minerals, mineral oils, and natural gas in the Government of the Federation.

Tinubu said excessive deductions, overlapping funds, and structural distortions in the oil and gas sector had weakened remittances to the Federation Account and warned that the practice must end to protect national revenue.

“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account. When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end,” he said on his verified X handle.

He also approved the constitution of a joint project team to execute integrated petroleum operations, with the commission serving as the interface with licensees and lessees where upstream and midstream operations are fully combined.

Members of the committee include the Minister of Finance and Coordinating Minister of the Economy; the Attorney-General of the Federation and Minister of Justice; the Minister of Budget and National Planning; and the Minister of State, Petroleum Resources (Oil). Other members are the Chairman, Nigeria Revenue Service; a representative of the Ministry of Justice; the Special Adviser to the President on Energy; and the Director-General, Budget Office of the Federation, who serves as secretary.

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Following last week’s meeting, the government allowed the NNPC to continue commercialising crude barrels before remitting proceeds to the Federation Account, instead of the Nigerian Upstream Petroleum Regulatory Commission handling the process.

One source said the modification became necessary because royalties and taxes are typically settled in barrels of crude oil rather than cash, making direct remittance impractical.

“The government is not looking likely to reverse the order on oil revenue remittance, but they are likely to change the mode of implementation. That is what the situation is currently looking like.

“So the implementation now is that they may not come to read any executive order on the issue. But the implementation is that the order said taxes and royalties should be paid to the federation account directly. But now they have realised that this has already been done and royalties and taxes are not paid in dollars or naira but with barrels of crude oil, which must first be lifted and commercialised before revenue can be realised,” the official said.

He added, “So the implementation now is that the NNPC will continue to lift and sell the crude on behalf of the government and then remit proceeds accordingly. That is the likely operational framework going forward.”

Under the evolving structure, royalties and taxes would pass through the new CBN account, supervised by the Office of the Accountant-General of the Federation, rather than existing regulatory channels.

The official said discussions on profit oil remittances were still ongoing, but cautioned that the framework could undermine reforms introduced under the Petroleum Industry Act, which granted the national oil company commercial autonomy.

“That is the new mode of implementation. But the 30 per cent that comes from profit oil. Instead of the NNPC collecting it and then remitting to the government, the government will collect everything, and then the government will pay back the amount spent on the cost of operations. So those are the level of discussions and the kind of discussions that are ongoing.

“This new funding style will still affect operations at the NNPC and take us back to what was happening before the Petroleum Industry Act. And that was what the PIA tried to cure. During that period, it led to a backlog of issues, and the NNPC couldn’t fulfill its responsibilities. It was subjected to the government budget and the likes, and it is difficult to take back refunds from the government,” he said.

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He recalled that the previous arrangement created severe financial strain. “The industry ran into a problem that period, and the system owed national traders and companies over $6bn in cash call arrears.

“Government was also taking everything during that period, and the company would be waiting for cash calls and our own operations. Then the PIA solved all the issues. But the new order is now bringing back the issues. Now that the PSC has been attacked, the government will still come to joint ventures. Discussions are ongoing now on what the company is spending per month. So an amount would be released every month to run operations,” he added.

Another official confirmed the revised implementation but warned that tighter government control could weaken regulatory independence and efficiency.

“Regulatory agencies are supposed to operate independently and should not depend on government funding. But what we are seeing is increasing interference. This could condition the NNPC to rely on government releases to meet its obligations,” he said.

Drawing parallels with past refinery policies under former President Olusegun Obasanjo, he noted that dedicated turnaround maintenance funds were once diverted with reimbursement promises that never materialised, contributing to refinery decline.

He also warned that removing frontier exploration funding could undermine long-term energy security.

“Frontier exploration is a government responsibility because private companies do not take those risks. If the funds are removed, exploration activities will decline. That means we will only produce from existing discoveries, and once those reserves are depleted, Nigeria’s future as an oil-producing country could be threatened,” he said.

On operational sustainability, he cautioned that uncertainty over funding could have labour implications.

“The current expectation is that the government will begin to fund operational costs, including salaries and emoluments, as promised. But if this does not happen, it is only a matter of time before companies begin to consider difficult decisions. Job losses could occur if the funding structure is not sustainable,” he warned.

He added that another high-level meeting had been scheduled later in the week, involving the Nigerian Upstream Petroleum Regulatory Commission, the Federal Ministry of Finance, and industry operators.

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Confirming the phased approach in a statement on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said a structured transition would ensure that direct payments by contractors into the Federation Account do not disrupt existing agreements.

“With respect to Section 2, Sub-section 3 of Executive Order 9 on direct payments by contractors into the Federation Account, the committee agreed that this transition must be implemented in a manner that respects existing contractual and financing arrangements, and maintains investor confidence,” the statement said.

Edun added that “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.”

He said a Technical Subcommittee would develop detailed guidelines within three weeks and commence a review of the Petroleum Industry Act to address fiscal anomalies.

“The committee will continue to provide coordinated guidance and timely updates as implementation progresses. We commend the cooperation of all stakeholders in advancing the President’s efforts to ensure that Nigeria’s petroleum resources deliver tangible, measurable benefits to citizens across the Federation,” the statement concluded.

Meanwhile, an NNPC official warned that the directive could disrupt production sharing contract operations and affect between 400 and 500 personnel dedicated to such activities.

“It will affect us to a great extent because we have staff who are dedicated to these lines of activity. We have no fewer than 400 to 500 staff whose daily work is focused on production sharing contracts. These are professionals working on rigs, platforms, seismic operations, and cost monitoring. We are talking about personnel across 39 PSC sites, out of which 14 are producing, and about five major sites contribute nearly 80 per cent of output under these arrangements.”

Commenting earlier, a Professor of Economics at Babcock University, Sheriffdeen Tella, said the directive could increase funds available to governments but warned about utilisation.

“It means there would be more money to share for development, although they have not been using it to develop the states. They have been sharing for some states, but we haven’t seen improvement. Some states have done well, but many others haven’t done much.

But the new order simply means that more money will be available to the federation account and more allocation for what the government wants to use it for.”

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Middle East war may force Nigerians to work from home – Dangote

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Chairman and CEO of Dangote Group, Aliko Dangote, has warned that the ongoing Middle East crisis could force Nigeria and other African countries to adopt COVID-era work-from-home restrictions if the conflict does not de-escalate.

Dangote gave the warning on Monday after meeting with President Bola Tinubu at his Ikoyi residence in Lagos, expressing deep concern about the economic impact of oil price volatility on the continent already burdened by debt.

The industrialist stated, “If this thing doesn’t de-escalate, you know, normally we in Africa, we don’t have any reserves in terms of savings.

“And so, people normally go out and look for money for the next day or for even the same day. Some of them, if they don’t work that day, they won’t eat.”

He cited Indonesia’s response to energy crisis pressures, where authorities asked workers to operate only four days a week and are considering full work-from-home arrangements similar to the COVID-19 pandemic.

“In some countries today what they’ve done, they asked everybody to work from home because they cannot afford it.

“I think Indonesians also only go to work four days a week. And they will look at the situation if it doesn’t improve, they will ask everybody not to go to work anymore.

“We will do like that time of COVID, where people will work from home,” Dangote stated.

The billionaire businessman warned that Africa would pay a disproportionate price for a crisis in which the continent has no involvement.

“It’s not only energy. Some people will try and take a chance and say, ‘Ah, this is an opportunity. So, let me make money.’

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“So, if this thing doesn’t de-escalate, it is going to keep going up and up and up, and governments cannot really and add to salaries.

“So, people will really, really feel the pinch,” he stated.

Dangote emphasised that the crisis would hit hardest at ordinary Africans operating small businesses, especially barbers, bread sellers, and industries dependent on generators for power.

“People who are barbers, people who make bread, people who have industries, who have to pay for their own generators, you know, I mean, you can see what is happening,” he said.

He called for urgent prayers and international intervention to end the conflict.

“We just need all hands-on deck to pray that this thing comes to an end,” the Dangote Group chairman stated.

Speaking on President Tinubu’s recent state visit to the United Kingdom, Dangote expressed optimism the trip will open doors for Nigerian business and investment.

He highlighted the £746m infrastructure agreement signed during the visit, describing it as significant beyond the monetary value.

“It has not been easy dealing with the British, getting this kind of money out of them. They too, they are struggling on their own. But I think this is to show confidence — it’s not about the money. It’s about the confidence in Nigeria,” Dangote said.

He predicted that the UK agreement would encourage other countries to follow suit.

“The moment that they do that, there will be other countries that will follow suit. Germany will come, others will line up and start coming up,” he stated.

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Dangote also revealed that Nigerian investors could now access the UK Export Finance agency, a credit resource that has remained largely untapped for years.

“For Nigerian investors, it has shown that we can also go to the same agency and tap the resources. It means that the agency now is open for business for Nigerians, and we will go as private people to look for them to give us support,” he explained.

The infrastructure agreement signed during Tinubu’s UK visit focuses on port development and other critical areas, with funding from UK Export Finance.

Dangote said he visited the President to extend Eid-el-Fitr greetings and pay his respects following Tinubu’s return from the two-day state visit to the United Kingdom.

The Middle East crisis has triggered concerns about oil price volatility globally, with potential impacts on inflation, transportation costs, and energy-dependent sectors across Africa.

Nigeria, despite being an oil-producing nation, remains vulnerable to global oil price fluctuations due to its dependence on imported refined petroleum products.

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One week to deadline, banks in last-minute rush for Recapitalisation

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Banks are in a last-minute push to meet the Central Bank of Nigeria’s recapitalisation deadline, with the apex bank expected to make a major announcement this week as the March 31, 2026, cut-off approaches.

Findings by The PUNCH indicate that most lenders have substantially met the new capital requirements, while a few institutions are resolving final regulatory and structural issues ahead of the deadline.

Top officials of the CBN said the regulator would provide an update on the exercise on Tuesday or Wednesday, amid expectations that the process will largely conclude within the stipulated timeline.

The recapitalisation exercise, introduced in March 2024, requires banks to meet new minimum capital thresholds of up to N500bn for international commercial banks, as well as lower thresholds for other licence categories.

Speaking at the end of the 304th Monetary Policy Committee meeting in Abuja, the CBN Governor, Olayemi Cardoso, expressed confidence that the process would be completed within the deadline, while acknowledging that a few institutions were still finalising their plans.

“And quite frankly, I expected to conclude within that stipulated time. It is expected,” he said.

He added, “There are other institutions that are still finalising their plans and evaluating a range of strategic options. And there’s time, which, of course, includes consolidating where appropriate.”

Cardoso disclosed that the banking sector had already mobilised significant capital under the exercise. “As of February 19, 2026, total verified and approved capital raise stands at N4.05tn,” he said.

He further stated that, “Of this, N2.90tn, which is 71.6 per cent, has been mobilised domestically, with $706.84m, which is N1.15tn, representing 28.33 per cent foreign.”

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He said the mix of domestic and foreign participation reflected strong investor confidence in the sector. “This balance, in my view, represents a mix of domestic and foreign, which signals broad investor engagement and confidence in the sector,” he added.

Despite the progress recorded, investigations showed that a few banks are yet to complete the process, largely due to delays affecting the merger process of two institutions, though there are indications that the issues may be resolved within the week.

There are also uncertainties around three banks under regulatory intervention, with the final capital position dependent on ongoing supervisory actions and possible support arrangements.

The CBN had earlier clarified that three banks under regulatory intervention are being treated as special cases and are not expected to follow the same sequence as other institutions in the recapitalisation process.

Cardoso acknowledged this category of banks during his remarks, noting that “The other group that I think I would be remiss not to mention are the institutions which are currently undertaking regulatory intervention with certain legal and structural considerations that have naturally influenced the sequencing of their recapitalisation actions.

“In other words, it’s unreasonable to expect that they would follow the same sequence as those that really and truly two and a half years ago, when we made this announcement, have had ample time in which to do a lot of the things they are doing.

“We remain the Central Bank of Nigeria, actively engaged with all relevant stakeholders to ensure that they have an orderly and credible outcome while maintaining financial stability.”

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He also reassured depositors about the safety of funds in such institutions. “Depositor funds in these institutions remain secure, and operations continue under close supervisory and regulatory oversight of the central bank,” he said.

Financial analysts say the recapitalisation exercise has exceeded expectations, especially given initial concerns about the size of the capital gap.

The Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, told The PUNCH on Sunday that the recapitalisation exercise had recorded strong progress across the banking sector.

“I think the recapitalisation exercise has been a success thus far,” he said. “When the exercise started, a lot of people were sceptical. Even those who were optimistic were scared because the gap seemed to be huge.”

He noted that domestic investors played a major role in the capital raise. “The bulk of the funds were actually from the domestic economy… that’s the interesting part,” he said.

Olubunmi added that most of the banks yet to be formally cleared had already raised the required funds and were only undergoing regulatory verification. “It’s not that they are still in the market looking for funds. The funds are with the CBN. They’re just providing documentation for the CBN to certify it,” he said.

He further explained that the three banks under regulatory intervention were being handled differently by the regulator. “Those ones… are special cases… we can’t really benchmark them with others,” he said.

According to officials, while about three banks are outstanding in terns of meeting the target, two of the bank are expected to complete their merger process this week.

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The third bank is also expected to meet the recapitalisation threshold this week.

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Airlines under pressure after jet fuel surges 100%

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There are indications that airfares may jump in the coming weeks following the hike in the cost of aviation fuel, commonly referred to as Jet A1, a development that is already putting pressure on airline operations and signalling higher ticket costs for passengers.

The spike in JetA1 price is largely due to the crisis in the Middle East, which has slowed the production and movement of crude oil across countries, worsening the operational cost of domestic carriers.

Checks by our correspondent with airlines showed an astronomical increase in the operating cost of airlines, particularly caused by the spike in aviation fuel, which has become the dominant cost driver in recent weeks.

At the time of filing this report, aviation fuel, which was sold between N900 and N995 before the Middle East crisis commenced, has jumped to between N2,500 and N2,700, depending on the airport of delivery, sharply raising the cost burden for operators.

Operators said they were monitoring developments, stressing that an increase in airfares was imminent, with strong indications that the prices of air tickets might double if the current trend persists.

Aviation fuel remains the single highest component of airline operations, accounting for about 30 to 35 per cent of total operational costs, a figure that industry players say is rising rapidly under current market conditions.

Airline sources said the price of the product had remained unstable since February 28, 2026, when the war started in Iran, changing about five times since that time, further complicating planning and pricing decisions.

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The spokesperson for United Nigeria Airlines, Chibuike Uloka, challenged the Federal Competition and Consumer Protection Commission to urgently engage domestic airline operators over the sustainability of current ticket pricing amid rising operational costs.

The FCCPC recently accused airlines of price fixing, with special attention on five unnamed airlines. This was, however, dismissed by the airline operators.

Uloka noted that despite aviation fuel prices soaring beyond N2,000 per litre, many carriers had continued to maintain fares at around N195,000, raising concerns about how long such pricing could be sustained under prevailing economic conditions.

He, however, warned that the situation could deteriorate further if fuel prices get to N3,000 per litre, stressing that not all airlines would be able to remain in operation under such pressure, a development that could further shrink capacity and push fares even higher.

He said, “Honestly, this is a very good time for FCCPC to come out and ask operators how they have been able to sustain flight tickets at N195,000 despite the increase in aviation fuel crossing N2000 and above. They should please ask how operators have kept on with operations? These are hard times. But most definitely, the current prices can’t be sustained for long periods.

“If this continues the way it is, because the way we are now, the price is also getting to N3000 per litre, and if it eventually gets to N3000, not all operators will be able to fly. And the ones that will be able to fly will not be Father Christmas. What we are asking now is not even profit, but at least to be able to operate optimally. Aviation has become a daily necessity because people must be able to move from one place to another. But FCCPC must be able to come out now and ask operators how we are faring.”

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The PUNCH understands that Nigeria has been unable to produce enough crude oil for the Dangote Petroleum Refinery, forcing the indigenous refining company to import crude.

Crude prices have jumped from $65–$69 to about $112 per barrel as of the time of filing this report, further worsening the cost of aviation fuel and pushing airlines closer to inevitable fare adjustments.

This effect has also upped gantry prices, with operators warning that sustained increases will ultimately be transferred to passengers through higher ticket fares.

Industry expert, Samuel Caulcrick, projected an imminent rise in airfares, attributing it to the growing burden of operational costs on airlines, which is increasingly being driven by the surge in aviation fuel prices.

He explained that current market conditions suggest that operating expenses have surged significantly, with aviation fuel now accounting for about 45 per cent of total airline costs, making it the single largest cost component in the sector and leaving operators with little choice but to adjust fares.

Caulcrick noted that the shift in cost structure marks a departure from previous years when maintenance expenses dominated airline spending. However, the persistent increase in the price of Jet A1 fuel has altered the dynamics, placing greater financial pressure on operators and inevitably influencing ticket pricing across the industry.

He stated, “Before now, the highest component of airline operation was maintenance, but that has changed with the continuous rise in the prices of Jet A1. In those days when aviation fuel was less costly, the maintenance cost was higher, but now fueling has taken over.

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“If that component goes up, it will definitely affect the prices of every seat. But we should expect the airfares to go up by 20 to 25 per cent in the coming days.”

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