By Ayomide Otitoju
President Bola Tinubu has directed a comprehensive review of deductions and revenue retention practices by the Nigerian National Petroleum Company Limited (NNPCL) and other major revenue-generating agencies, in a bid to increase public savings, improve spending efficiency, and free up resources for economic growth.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the directive on Wednesday after the Federal Executive Council (FEC) meeting at the State House, Abuja. The order affects the NNPCL, Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigerian Maritime Administration and Safety Agency (NIMASA).
Tinubu specifically called for a reassessment of NNPCL’s 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act (PIA), tasking the Economic Management Team to present actionable recommendations to FEC.
The president said the measure is part of ongoing reforms aimed at dismantling economic distortions, restoring policy credibility, strengthening resilience, and boosting investor confidence. He reaffirmed Nigeria’s ambition of achieving a $1 trillion economy by 2030, which would require annual growth of at least 7% from 2027 — a target he described as “not just economic, but a moral imperative” to reduce poverty.
Citing the July 2025 International Monetary Fund (IMF) Article IV report, Tinubu said Nigeria’s current trajectory supports an investment-led growth model. He also highlighted grassroots empowerment through the Renewed Hope Ward Development Programme, which targets all 8,809 wards nationwide with micro-level poverty reduction initiatives in partnership with states, local governments, and private sector players.
The president stressed that public investment accounts for just 5% of GDP due to low savings, making it crucial to “optimise every available naira,” especially amid global liquidity constraints.
Edun said macroeconomic indicators were showing improvement, with a more stable exchange rate, easing inflation, rising revenues, and debt-to-GDP ratios within acceptable ranges. He emphasised that boosting public sector savings is key to unlocking investment potential.
The finance minister also presented two other FEC memos — a $125 million Islamic Development Bank financing for 161 kilometres of road infrastructure in Abia State and a plan to refinance ₦4 trillion in outstanding electricity sector debt. He said the electricity debt resolution will be implemented in phases, with the first phase expected within three to four weeks, coordinated by the Debt Management Office and other agencies.
