President Tinubu sign order make oil money go direct to Federation Account
According to statement wey Special Adviser on Information and Strategy to Presido BolaTinubu release, dis Executive Order na to protect and increase oil and gas money.
President Bola Ahmed Tinubu don sign one Executive Order wey go make all di money wey dey come from oil and gas dey pay direct into Federation Account.
Dis na big change for how government dey handle money, e go help stop leakages, remove double deductions and make sure di three levels of government get more money.
Di order wey dem don already gazette, President sign am based on Section 5 of di 1999 Constitution as dem amend am, and e follow Section 44(3) wey talk say di Federal Government own and control all mineral resources.
According to statement wey im Special Adviser on Information and Strategy, Bayo Onanuga release, dis Executive Order na to protect and increase oil and gas money, stop waste, remove double work for di sector and make sure di money better reach all Nigerians.
Di order also wan make sure federal, state and local governments dey get di correct money wey constitution talk say dem suppose get - money wey di Presidency talk say dem remove for 2021 through di Petroleum Industry Act (PIA).
Di Presidency tok say di PIA create "structural and legal channels" wey make plenty Federation money lost through deductions and different charges and fees.
Under di current PIA way of doing tins, di Presidency talk say NNPC Limited dey keep 30 per cent of Federation oil money as management fee for Profit Oil and Profit Gas wey dey come from Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts.
Aside from dat, dis national oil company dey also keep 20 per cent of im profits to take care of working capital and future investments.
Di Federal Government talk say dis extra 30 per cent management fee no make sense, dem argue say di 20 per cent wey dem dey keep before na enough to support di work wey NNPC Limited dey do under dis kind contracts.
Di Presidency raise anoda concern about another 30 per cent wey NNPC Limited dey keep from profit oil and profit gas under di same contract arrangements, wey dem set aside for Frontier Exploration Fund under sections 9(4) and (5) of di PIA.