A recent World Bank report indicates that President Bola Tinubu’s directive to halt specific retentions by the Nigerian National Petroleum Corporation (NNPC) has significantly reduced deductions from the Federation Account. According to the report, these deductions decreased from N10.1 trillion to N8.4 trillion during the first half of 2026.
The reduction reflects the impact of the presidential order on the distribution of oil revenue. By stopping certain NNPC retentions, a larger portion of the funds collected from the sale of crude oil is now being transferred directly into the Federation Account, which serves as the central pool for revenue sharing among the federal, state, and local governments in Nigeria.
The World Bank’s analysis highlights the financial implications of this policy shift, noting the specific change in figures between the previous baseline of N10.1 trillion and the new total of N8.4 trillion. This adjustment aims to optimize the flow of oil proceeds to the public purse, potentially enhancing the fiscal resources available for national development projects and social programs.
The report underscores the importance of transparent and efficient revenue management in Nigeria’s oil sector. By reducing the amount retained by the NNPC before distribution, the administration seeks to ensure that a greater share of the nation’s primary export revenue is accessible for broader governmental use.
These figures are derived from the World Bank’s assessment of Nigeria’s fiscal performance in the first half of 2026. The data provides a clear metric for evaluating the effectiveness of the presidential directive in altering the trajectory of oil revenue allocation within the country’s fiscal framework.
<small>Source: Punch Nigeria — read the original story there.</small>