Economy
Tinubu Signs Executive Order to Stop NNPC 30% Management Fee
By Adedapo Adesanya
President Bola Tinubu has signed an Executive Order directing all oil and gas revenues be remitted directly to the Federation Account, effectively halting the 30 per cent management fee previously retained by Nigerian National Petroleum Company (NNPC) Limited under the Petroleum Industry Act (PIA) 2021.
The order, signed on February 13, 2026, and gazetted the same day, mandates the direct transfer of revenues from production sharing contracts and other upstream arrangements to the Federation Account.
The presidency said the move is aimed at restoring full constitutional revenue entitlements to federal, state and local governments by eliminating deductions and retentions it described as excessive and duplicative.
Under the new directive, NNPC Limited will no longer retain the 30 per cent management fee on Profit Oil and Profit Gas derived from Production Sharing Contracts, Profit Sharing Contracts and Risk Service Contracts. The government maintained that the existing 20 per cent profit retention allowed for working capital and investments is sufficient to meet the company’s operational requirements.
The Executive Order also abolishes the 30 per cent retention for the Frontier Exploration Fund as provided under Sections 9(4) and (5) of the PIA.
This means that all funds earmarked for frontier exploration are now to be transferred directly into the Federation Account, a move the Presidency said would prevent the build-up of idle balances for speculative projects.
In addition, operators and contractors under production sharing arrangements are required to remit Royalty Oil, Tax Oil, Profit Oil, Profit Gas and all other government entitlements straight to the Federation Account with effect from February 13, 2026.
The order further suspends the payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund. Going forward, such penalties will be paid into the Federation Account, while existing expenditures from the fund must comply strictly with public procurement laws.
According to the presidency, the existing PIA framework has enabled deductions that exceed global norms and divert more than two-thirds of potential oil and gas revenues away from the Federation Account. It attributed declining net oil revenue inflows to these structures and what it described as fragmented oversight mechanisms.
President Tinubu also raised concerns over NNPC Limited’s dual role as concessionaire and commercial operator under production sharing contracts, noting that the arrangement creates competitive distortions and undermines the company’s transition to a fully commercial entity as envisaged under the PIA.
To drive implementation, the President approved the constitution of a joint project team, with the Nigerian Upstream Petroleum Regulatory Commission serving as the interface for integrated upstream and midstream operations.
An implementation committee chaired by the Minister of Finance and Coordinating Minister of the Economy will oversee the reforms. Other members include the Attorney-General of the Federation, Minister of Budget and National Planning, Minister of State for Petroleum Resources (Oil), Chairman of the Federal Inland Revenue Service, Special Adviser to the President on Energy, and the Director-General of the Budget Office.
However, industry analysts noted that an executive order is not enough since it can’t override a stipulated law, advising the president to write to the National Assembly seeking an amendment to the PIA.
By Aduragbemi Omiyale
Shares of First Holdco Plc worth N45.0 billion issued through a private placement have been listed on the Nigerian Exchange (NGX) Limited.
A circular issued by the Head of Issuer Regulation Department of the NGX Regulation Limited, Mr Godstime Iwenekhai, disclosed that the equities were admitted for trading at the stock market on Monday.
According to the notice, the additional shares brought for listing to rank pari passu with existing shares of the organisation were 1,021,334,544 units.
These stocks were sold to one of the company’s major shareholders at a unit price of N44.06, amounting to N45.0 billion.
The total issued and fully paid-up shares of First Holdco, as a result of this listing, are now 45,475,027,677 ordinary shares of 50 Kobo each.
“Trading licence holders are hereby notified that an additional 1,021,334,544 ordinary shares of 50 Kobo each of First Holdco Plc were on Monday, June 22, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares listed on NGX arose from the company’s private placement of 1,021,334,544 ordinary shares of 50 Kobo each at N44.06 per share.
“With the listing of the additional shares, the total issued and fully paid-up shares of First Holdco Plc have now increased to 45,475,027,677 ordinary shares of 50 Kobo each from 44,453,693,133 ordinary shares of 50 Kobo each,” the disclosure stated.
By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved fresh import licences for petrol and diesel for the third quarter of 2026 (July – September) to prevent potential supply shortages in the domestic market.
According to a report by global energy intelligence firm, Argus Media, the latest approvals were issued to major downstream operators amid declining fuel stock levels and concerns over reduced petrol production at the 700,000 barrels per day Dangote Petroleum Refinery in Lagos.
The move comes as Nigeria continues to balance increasing local refining capacity with the need to guarantee adequate supplies of petroleum products across the country.
According to the Argus report, domestic firms, including AA Rano, AYM Shafa, Bono Energy, Nipco, Matrix Energy and Pinnacle Oil, received permits to import Premium Motor Spirit, popularly known as petrol, during the July-September period.
The publication further reported that the same companies, with the exception of Nipco, were granted approvals to import Automotive Gas Oil, commonly known as diesel. The fresh approvals follow an earlier batch of petrol import permits issued by the regulator in May, covering about 720,000 metric tonnes.
Quoting a regulatory source, Argus noted that many of the companies granted the latest approvals were among those that had received permits in previous rounds. “These are some of the same ones that previously received the PMS permits,” the source was quoted as saying.
It was also claimed that AA Rano and Matrix Energy each received approvals to import 180,000 metric tonnes of petrol. AYM Shafa received approval for 120,000 metric tonnes, while Pinnacle Oil received a permit covering 150,000 metric tonnes.
For diesel imports, Argus reported that AYM Shafa obtained a permit for 60,000 metric tonnes, while Pinnacle secured approval for 45,000 metric tonnes. The report stated that the import approvals were issued only recently, after being delayed from an initial target date of June 15.
By Adedapo Adesanya
Three securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.01 per cent on Tuesday, June 23, dragging the market capitalisation down by N25.91 billion to N2.544 trillion from Monday’s N2.570 trillion. Also, the NASD Security Index (NSI) decreased by 43.17 points to 4,239.34 points from 4,282.51 points.
The triplet price losers were Central Securities Clearing System (CSCS) Plc, which gave up N4.82 to trade at N75.00 per unit versus Monday’s closing price of N79.82 per unit. NASD Plc depreciated by N3.70 to close at N33.30 per share compared with the preceding day’s N37.00 per share, and Nitrox Industrial Gases Plc marginally lost 1 Kobo to sell at N21.41 per unit, in contrast to the previous session’s N21.42 per unit.
Tuesday’s trading data showed that the volume of securities traded by investors retreated by 35.9 per cent to 211,671 units from 330,034 units, and the value of securities fell by 82.9 per cent to N5.6 million from N32.7 million, while the number of deals doubled to 38 deals from 19 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 68.1 million units transacted for N4.7 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, trailed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
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