Nigerian President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, as part of sweeping reforms aimed at boosting public finances, the presidency said on Wednesday.

Under the law, the Nigerian National Petroleum Corporation keeps 30% of oil and gas profits for frontier exploration in inland basins.

The presidency said those funds will now be paid into the federation account and appropriated by the government.

NNPC also retains 30% of oil and gas sales as operational costs and receives 30% of proceeds from Production Sharing Contracts.

Under the new directive, all revenues from these arrangements will flow directly into the federation account, while the company will instead receive the appropriated management fees.

Royalty payments, petroleum profit taxes and other statutory revenues previously collected and retained by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will also be paid directly into the Federation Account.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will also remit its revenues in full, with the cost of collection funded through appropriation.

Tinubu’s office said deductions permitted by law had sharply reduced net oil inflows and contributed to fiscal strain across federal, state, and local governments. The president also ordered a review of the law and established an implementation committee to enforce the changes.