Nigerian President Bola Tinubu has mandated a sweeping review of financial practices at key revenue-generating agencies, including the state-owned oil firm NNPC Limited, aiming to bolster public savings, streamline expenditure, and free up capital for national development. The directive, announced by Finance Minister Wale Edun, follows a Federal Executive Council (FEC) meeting in Abuja and marks the latest step in efforts to stabilize Africa’s largest economy amid fiscal constraints.
Under scrutiny are existing deductions and revenue retention policies at agencies such as the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, and the Nigerian Maritime Administration and Safety Agency (NIMASA). A focal point is the Nigerian National Petroleum Company Limited (NNPCL), which faces reassessment of its 30% management fee and a matching deduction earmarked for frontier oil exploration under the Petroleum Industry Act (PIA). Tinubu has instructed the Economic Management Team, led by Edun, to propose actionable reforms to the FEC, emphasizing the need to sustain investor-friendly policies and combat systemic inefficiencies.
Linking the measure to broader economic goals, Tinubu reiterated Nigeria’s target of achieving a $1 trillion economy by 2030, requiring annual growth of at least 7% starting in 2027. He framed the objective as both an economic necessity and a “moral imperative” to reduce poverty, citing an International Monetary Fund (IMF) report from July 2025 that reportedly endorses Nigeria’s reform trajectory. The president highlighted the Renewed Hope Ward Development Programme, a nationwide initiative to empower communities through localized anti-poverty projects in partnership with subnational governments and private actors.
With public investment accounting for just 5% of GDP—a figure Tinubu attributed to historically low savings—the urgency to optimize revenue has intensified. Edun noted improving macroeconomic indicators, including exchange rate stability and moderating inflation, but stressed that raising public savings remains critical to unlocking investments. Alongside the directive, the FEC reviewed two financing proposals: a $125 million Islamic Development Bank loan for road infrastructure in Abia State and a phased refinancing plan for N4 trillion ($3.2 billion) in outstanding electricity sector debts, with initial steps expected within weeks.
The reforms come as Nigeria seeks to attract foreign capital and diversify its oil-dependent economy, balancing fiscal discipline with investments in infrastructure and social programs to address deep-seated inequality.
