President Bola Ahmed Tinubu has directed a comprehensive review of deductions and revenue retention practices by major revenue-generating agencies, including the Nigerian National Petroleum Company Limited (NNPCL), to improve public savings, spending efficiency, and economic growth.

The directive, announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, applies not only to NNPCL but also to the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).

In his statement, Edun confirmed that the President had ordered a reassessment of specific NNPCL deductions, including its 30 per cent management fee and the 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).

Naijaonpoint reports that President Tinubu has charged the Economic Management Team, led by Edun, to provide actionable recommendations to the Federal Executive Council (FEC) on the best course of action.

The President explained that the move is part of ongoing reforms aimed at dismantling economic distortions, enhancing resilience, and boosting investor confidence.

“The reforms have created a transparent and competitive business environment attractive to local and foreign investors in critical sectors such as infrastructure, oil and gas, health, and manufacturing,” Tinubu said.

Tinubu also reaffirmed Nigeria’s goal of achieving a $1 trillion economy by 2030, stressing the need for consistent growth of at least 7 per cent annually from 2027.

He described this target as “not just economic, but a moral imperative”, emphasising that higher growth is key to tackling poverty in the country.

The President referred to the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s current economic trajectory and the critical need for investment-led growth.

Further outlining his administration’s commitment to grassroots empowerment, Tinubu highlighted the Renewed Hope Ward Development Programme.

The initiative, which spans all 8,809 wards across Nigeria, is aimed at lifting economically active citizens through micro-level poverty reduction strategies in collaboration with states, local governments, and private partners.

Optimising Public Sector Savings Amid Global Constraints

Tinubu also noted that public investment currently accounts for just 5 per cent of Nigeria’s GDP, largely due to low savings.

He underscored the importance of optimising every available naira to boost savings, especially amid current global liquidity constraints.

The Minister, Wale Edun, explained that Nigeria’s macro-economic indicators were showing signs of improvement, with a more stable exchange rate, easing inflation, rising revenues, and manageable debt-to-GDP ratios.

He emphasised that the President’s directive is designed to quickly raise public sector savings by reviewing the revenue retention and deduction practices in key agencies.

Edun also presented two memoranda before the FEC meeting on Wednesday. The first memorandum sought approval for a $125 million Islamic Development Bank financing for infrastructure in Abia State, which will cover 35 kilometres of roads in Umuahia and 126 kilometres in Aba.

Naijaonpoint understands that the second memorandum was aimed at refinancing ₦4 trillion in outstanding electricity sector obligations, with the first phase expected to be completed in the next three to four weeks.

The Debt Management Office (DMO) and other relevant agencies will oversee the resolution.