The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed support for President Bola Tinubu’s recent Executive Order mandating the direct remittance of oil revenues to the Federation Account, a move it says will enhance accountability at the Nigerian National Petroleum Company Limited (NNPCL).
The Order, issued on Thursday, removes several revenue streams from NNPCL, requiring the state-owned oil company to deposit all proceeds directly into the central government account. PETROAN’s spokesperson, Joseph Obele, stated that the directive is crucial for transforming NNPCL into a commercially viable and transparent entity. The association’s National President, Billy Gillis-Harry, characterised the decision as aligned with global fiscal governance standards, arguing it will curb revenue leakages and strengthen public trust in petroleum resource management.
This position contrasts with that of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which has rejected the Order, warning it could lead to job losses within the national oil company.
The policy shift targets long-standing issues in Nigeria’s oil sector, where opaque revenue handling has often been cited as a source of fiscal inefficiency. By centralising remittances, the government aims to ensure more predictable funding for the Federation Account, which distributes revenues to federal, state, and local governments. Analysts note that NNPCL’s previous control over multiple revenue streams—such as pipeline tariff payments and crude oil allocations—has historically limited oversight.
For PETROAN, which represents downstream petroleum retailers, a more accountable and profit-driven NNPCL could stability in fuel supply and pricing. The association believes the reform will foster a healthier business environment across the sector.
The Executive Order signifies a decisive step in President Tinubu’s broader economic reform agenda, seeking to streamline Nigeria’s oil economy. Its implementation will be closely monitored for its impact on NNPCL’s operational autonomy, federal-state revenue sharing, and sector employment. The divergence in union responses underscores the complex balance between fiscal discipline and labour concerns in Nigeria’s pivotal oil industry.
