President Bola Tinubu on Wednesday ordered a review of deductions and revenue retention by the Nigerian National Petroleum Company Limited (NNPCL) and other major revenue-generating agencies, to boost public savings, improve spending efficiency, and unlock resources for growth.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the directive after the Federal Executive Council (FEC) meeting at the State House, Abuja, chaired by the president.
The order covers 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). He instructed the Economic Management Team, led by Edun, to present actionable recommendations to FEC.
The president said the move was part of reforms aimed at dismantling economic distortions, restoring policy credibility, strengthening resilience, and boosting investor confidence. He highlighted that these reforms have created a transparent and competitive business environment for local and foreign investors in sectors such as infrastructure, oil and gas, health, and manufacturing.
Targeting 7% Annual Growth
Tinubu reiterated Nigeria’s ambition to build a $1 trillion economy by 2030, which requires annual growth of at least 7% from 2027. He described this target as both an economic necessity and a moral imperative to combat poverty.
Quoting the July 2025 International Monetary Fund (IMF) Article IV report, Tinubu said Nigeria’s economic trajectory supports investment-led growth. He also underscored grassroots empowerment through the Renewed Hope Ward Development Programme, covering all 8,809 wards nationwide, aimed at lifting economically active citizens via micro-level poverty reduction strategies in partnership with states, local councils, and the private sector.
Tinubu noted that public investment currently accounts for only 5% of GDP due to low savings, stressing the need to optimise “every available naira” under tight global liquidity conditions.
Edun said macro-economic indicators are improving, with a more stable exchange rate, easing inflation, rising revenues, and a debt-to-GDP ratio within range. He added that the president’s directive aims to raise public sector savings by reviewing deduction and retention practices.
He also presented two memoranda to FEC: a $125 million Islamic Development Bank facility for 35 kilometres of roads in Umuahia and 126 kilometres in Aba, Abia State; and a plan to refinance ₦4 trillion in outstanding electricity sector debts. The debt resolution will be phased, with the first stage expected within three to four weeks, coordinated by the Debt Management Office and other agencies.