Publisher of Africa Oil+Gas Report, Toyin Akinosho has described President Bola Tinubu’s recent executive order directing all oil and gas revenues to be remitted directly to the federation account as a ‘snap your fingers’ decision, warning that unilateral action could unsettle investors and disrupt established processes.
In an interview with ARISE News on Sunday,
Akinosho cautioned against abrupt changes in Nigeria’s oil revenue management.The order, which removes the Nigerian National Petroleum Company Limited’s (NNPC) authority to remit earnings, was gazetted on February 13 and is now in effect.
“My sense, the moment I read that press release, I just thought of a phrase: snap your fingers,” Akinosho said. “You can’t snap a finger and amend the law, no matter how well-intentioned. There are processes and procedures that must be followed.”
He noted that while past reports had highlighted inefficiencies in NNPC’s remittances, including delays and use of funds for infrastructure projects like gas pipelines, the Petroleum Industry Act (PIA) already provides legal guidance on revenue allocations. “Even after the signing of the PIA, there are still some dysfunctions. But I don’t think snapping your fingers is the way to resolve the issue,” he said.
Investment and Frontier Exploration Concerns
Akinosho warned that abrupt policy changes could discourage investment in frontier exploration and other oil and gas projects. “If the president says, ‘Let’s move the money to the federation account,’ how then do companies access funds for seismic activity or exploration? This was already beginning to be a challenge, and now companies may hesitate to invest,” he explained.
He added that Nigeria’s deepwater Production Sharing Contracts (PSCs), while smaller in volume compared to joint ventures, are essential for expanding crude production. Removing discretionary access to funds could affect ongoing exploration and revenue generation.
The publisher emphasised that the executive order, while aiming to enhance accountability, would be more effective if accompanied by legislative amendment. “What the president has done is coming from the right place. We want a nation of laws. But this shouldn’t be done by fiat. Processes and procedures exist for a reason,” he said.
Akinosho also highlighted that the executive order could trigger an audit of previous NNPC retentions, a move he supported but cautioned must be done transparently to maintain investor confidence.
“If people have been investing based on existing arrangements, suddenly changing the rules creates uncertainty. Consistency is key. Investors need to trust that the law will be upheld,” he said.
While acknowledging that the move could help curb waste and strengthen federation revenue, Akinosho warned that abrupt implementation could have unintended consequences. “Funding must reach the right places. There’s a lot of revenue, trillions of naira in the system, and tracking it is complex. The president may be frustrated with inefficiencies, but taking control without following due process introduces more risks than it solves,” he said.
He concluded that reforms in the oil and gas sector require both oversight and careful adherence to established legal frameworks. “We need conversations, audits, and transparency. Snapping your fingers may feel decisive, but it risks undermining trust in the system and discouraging investment,” Akinosho said.
Boluwatife Enome
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