President Bola Tinubu has ordered the review of deductions and revenue retention by the Nigerian National Petroleum Company (NNPC) Limited and other major revenue-generating agencies in the country.
The move is to boost public savings, improve spending efficiency, and unlock resources for growth, according to resolutions reached at Wednesday’s Federal Executive Council (FEC) meeting in Abuja.
The directive applied to NNPC, the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Maritime Administration and Safety Agency (NIMASA).
Mr Tinubu specifically called for a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA).
He tasked the Economic Management Team, led by the Minister of Finance, Mr Wale Edun, to present actionable recommendations to FEC on the best way forward.
President Tinubu said the directive was part of efforts to sustain reforms that had dismantled economic distortions, restored policy credibility, enhanced resilience, and bolstered investors’ 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.
Also, President Tinubu noted that Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027, describing the target as “not just economic, but a moral imperative” as higher growth was the surest way to tackle poverty.
He cited the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.
The President also said Nigeria’s goal of $1 trillion economy by 2030 required growth of at least seven per cent annually from 2027.
Mr Tinubu, according to a statement from the Ministry of Finance, described it as “not just economic, but a moral imperative”, as higher growth is the surest path to tackling poverty.