President Bola Tinubu has ordered a review of deductions and revenue retentions by the Nigerian National Petroleum Company Limited (NNPCL) and other major revenue-generating agencies, as part of efforts to boost public savings, improve spending efficiency, and unlock resources for growth.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the directive after Wednesday’s Federal Executive Council (FEC) meeting at the State House, Abuja, presided over by the president.
The review will cover NNPCL, the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigerian Maritime Administration and Safety Agency (NIMASA). Tinubu specifically called for a reassessment of NNPCL’s 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act (PIA).
The president tasked the Economic Management Team, led by Edun, to submit actionable recommendations to FEC on the next steps. He said the move is part of ongoing reforms that have dismantled economic distortions, restored policy credibility, enhanced resilience, and improved investor confidence — creating a transparent, competitive business environment in key sectors including infrastructure, oil and gas, health, and manufacturing.
Targeting 7% Annual Growth
Tinubu reiterated Nigeria’s goal of achieving a $1 trillion economy by 2030, requiring annual growth of at least 7% from 2027. He described the target as “not just economic, but a moral imperative,” stressing that higher growth is essential to reducing poverty. He cited the July 2025 International Monetary Fund (IMF) Article IV report, which he said endorsed Nigeria’s economic trajectory and the need for investment-led growth.
Highlighting grassroots empowerment, he referenced the Renewed Hope Ward Development Programme, which covers all 8,809 wards nationwide and aims to uplift economically active citizens through micro-level poverty reduction strategies in collaboration with state and local governments, as well as private partners.
Tinubu noted that public investment accounts for only 5% of GDP due to low savings, making it critical to optimise “every available naira,” especially under global liquidity constraints.
Finance Minister’s Breakdown
Edun said macroeconomic indicators are improving, citing a more stable exchange rate, easing inflation, rising revenues, and debt-to-GDP ratios now within sustainable limits. He emphasised that savings form the foundation of investment and that reviewing deductions and retentions will help quickly raise public sector savings.
He also disclosed that he presented two memoranda to FEC:
- $125 million Islamic Development Bank financing for infrastructure in Abia State, covering 35 kilometres of roads in Umuahia and 126 kilometres in Aba.
- A plan to refinance N4 trillion in outstanding electricity sector obligations, to be executed in phases, with the first phase expected within three to four weeks under the coordination of the Debt Management Office and other agencies.
