Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has shed light on a recent presidential directive requiring certain oil revenue deductions to be paid directly into the Federation Account, framing the measure as part of the federal government’s push for greater fiscal transparency and domestic resource mobilisation.
Mr. Edun made the clarification on Friday during a question-and-answer session on the sidelines of the 2026 Technical Group Meeting of the Intergovernmental Group of Twenty-Four (G-24), which Nigeria is hosting in Abuja.
NNPC Forensic Audit Underway
The minister confirmed that a forensic audit of the Nigerian National Petroleum Company (NNPC) is currently in progress, conducted under a mandate from the Federation Account Allocation Committee (FAAC). He offered no further details on the scope or timeline of the audit beyond affirming that it is ongoing.
The Executive Directive Explained
According to Mr. Edun, the directive stems from a broader review by a subcommittee of the Federal Executive Council (FEC) tasked with examining deductions from the Federation Account — particularly cost-of-collection charges levied by revenue-generating agencies. Following the review, President Bola Tinubu directed that three specific revenue streams — the NNPC management fee, the Frontier Exploration Fund, and gas flare penalties — be remitted directly to the Federation Account rather than being retained separately.
The minister stressed that the directive does not conflict with or prejudice ongoing legislative processes, including those related to the Petroleum Industry Act (PIA). An implementation committee that includes state government representatives has been constituted and is expected to hold its first meeting the following week, at which specific figures would be disclosed.
Cost-of-Collection Charges Under Scrutiny
Mr. Edun also addressed concerns about deductions by revenue agencies, confirming that cost-of-collection charges are equally subject to review. Under the Fiscal Responsibility Act, agencies are limited in what they can retain beyond approved operational costs, and the government is now auditing overall expenditure to ensure compliance with statutory limits.
Domestic Revenue Mobilisation a Priority
The minister linked the reforms to Nigeria’s broader fiscal challenges, noting that hostile global financial markets and rising debt costs make it essential for the country to look inward. He drew a distinction between self-liquidating project finance — such as toll roads — and debt that crowds out spending on health, education, and infrastructure.
Digital Revenue Collection
Mr. Edun highlighted ongoing efforts to digitise government revenue collection, disclosing that the Federal Executive Council has set a deadline to end cash collection of government revenues. Revenue agencies are being integrated onto a unified digital platform to enable real-time payment monitoring and improve accountability.
Investor and Tax Policy Dialogue
On concerns about capital gains tax and private equity exits, the minister said the government’s Tax Implementation Committee would consult with stakeholders. He emphasised Nigeria’s preference for long-term, patient capital that creates jobs and supports economic growth.
Social Protection Update
The minister also provided an update on the government’s direct benefit transfer programme, which targets 15 million households. He said 9.1 million households have received payments at least once, with around one million additional beneficiaries due for disbursement shortly. The scheme uses National Identity Numbers (NIN) linked to bank accounts or mobile wallets to ensure transparency.
The disclosures were made against the backdrop of the G-24 Technical Group Meeting, which is focused on mobilising finance for sustainable development as developing economies grapple with tightening fiscal space and elevated global interest rates.
