PETROAN backs Tinubu’s order stripping NNPC of oil revenue deductions

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has endorsed President Bola Tinubu’s executive order mandating the direct remittance of oil and gas revenues into the federation account, describing the move as a major reform to curb leakages in the sector.

President Tinubu signed the order on February 18, removing the Nigerian National Petroleum Company (NNPC) Limited’s authority to deduct oil revenues before remitting funds to the Federation Account Allocation Committee (FAAC).

In a statement issued on Saturday, PETROAN National President, Billy Gillis-Harry, said the directive would improve transparency and accountability in the management of Nigeria’s petroleum resources, while restoring public confidence in the system.

He noted that centralised remittance of revenues would strengthen oversight and enhance fiscal stability by ensuring more predictable inflows into the federation account, thereby supporting budget implementation and macroeconomic management.

Gillis-Harry added that the order would reposition NNPC as a fully commercial entity focused on operational efficiency, profitability and discipline. “The Order may encourage NNPCL to ensure government-owned refineries become fully functional and commercially viable,” he added.

According to him, improved transparency in revenue management would boost Nigeria’s economic credibility and make the country more attractive to investors.

The PETROAN president commended Bayo Ojulari, Group Chief Executive Officer of NNPC, for initiatives aimed at revitalising the Port Harcourt Refining Company, particularly following a recent inspection meeting with a Chinese technical partner.

He recommended adopting the governance model of Nigeria LNG Limited (NLNG) in Bonny for the Port Harcourt refinery, saying a commercially driven framework would enhance efficiency, competitiveness and long-term sustainability, while reducing Nigeria’s dependence on fuel imports.