FG Halts NNPCL Revenue Deductions, Orders Power Subsidy Audit

The Federal Government has directed an immediate end to automatic deductions by the Nigerian National Petroleum Company Limited (NNPCL) from oil and gas revenues before remitting funds into the Federation Account. A practice that involved over ₦2.1 trillion in deductions over recent years.

The decision forms part of an executive move aimed at tightening oversight of national revenues, ensuring that all proceeds due to the federation are fully remitted without pre-deductions for management fees or exploration funds.

At the same time, the government has ordered a forensic audit of subsidy claims in the power sector, originally claimed to be around ₦6 trillion by electricity companies. Following preliminary scrutiny, that figure was trimmed to roughly ₦2.8 trillion, highlighting discrepancies and underscoring the need for greater financial transparency.

Officials say these twin actions signal a broader push for stricter financial accountability in Nigeria’s key revenue-generating sectors, though some industry experts caution that rapid policy shifts could create uncertainty for investors and long-term sector planning.

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