KEY POINTS
- Mr. Tunji Oyebanji, CEO of 11 Plc, has endorsed the Federal Government’s directive for NNPCL to remit oil and gas revenues directly into the Federation Account.
- The reform, established via a February 18 executive order by President Bola Tinubu, aims to curb leakages, eliminate duplications, and optimize national revenue.Oyebanji emphasized that while the move strengthens transparency, the government must ensure NNPCL retains enough cash flow to meet its commercial and operational obligations.
MAIN STORY
The Chief Executive Officer of 11 Plc, Mr. Tunji Oyebanji, has voiced strong support for the Federal Government’s recent mandate requiring the direct remittance of oil and gas revenues from the Nigerian National Petroleum Company Ltd. (NNPCL) into the Federation Account. Speaking to the News Agency of Nigeria (NAN) in Lagos over the weekend, Oyebanji characterized the directive as a vital step toward achieving fiscal discipline and strengthening Nigeria’s public finances. This reform follows an executive order signed by President Bola Tinubu on February 18, 2026, intended to block revenue leakages and ensure resources are available for national priorities.
While acknowledging the necessity of the reform due to current fiscal pressures, Oyebanji cautioned that the implementation must be handled with care to preserve NNPCL’s operational efficiency. He noted that as a commercial entity under Nigeria’s petroleum governance framework, NNPCL must remain capable of financing capital investments and meeting contractual obligations with private-sector efficiency. Oyebanji argued that a clear funding mechanism is essential to prevent delays in critical infrastructure repairs and financial commitments during the company’s transition into a fully commercial enterprise.
The 11 Plc boss concluded that the reform reflects a commitment to accountability that will ultimately benefit all three tiers of government. He maintained that with proper coordination and stakeholder engagement, the directive will enhance the transparency of the energy sector while safeguarding the resilience of the nation’s most strategic energy institution.
WHAT’S BEING SAID
- “I understand that the Federal Government is working to strengthen revenue generation and block leakages in order to meet critical expenditure obligations,” stated Tunji Oyebanji.
- He emphasized the need for careful execution: “We must understand the cash-flow requirements of NNPCL so that its commercial operations continue seamlessly.”
- Oyebanji noted the reform is a “step toward transparency, fiscal discipline and strengthened public finances”.
WHAT’S NEXT
- Stakeholders will be watching for the specific operational guidelines that will allow NNPCL to access the funds necessary for its day-to-day commercial activities.
- The government is expected to engage in further coordination to ensure the new remittance process does not stall ongoing energy infrastructure projects.
- Future reports from the Federation Account Allocation Committee (FAAC) will likely reflect the impact of this direct remittance on the monthly revenue shared between states and the federal government.
BOTTOM LINE
The Bottom Line is that while the direct remittance of NNPCL revenue is a victory for transparency, its success hinges on a delicate balance. The government must curb leakages without starving the national oil company of the liquidity it needs to operate as a competitive, global energy player.
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