To increase public savings, enhance spending effectiveness, and release resources for expansion, President Bola Tinubu on Wednesday ordered a review of deductions and revenue retention policies by Nigeria's main revenue-generating organizations. The Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Maritime Administration and Safety Agency, the Nigeria Customs Service, and the Federal Inland Revenue Service are among the organizations.
During Wednesday's Federal Executive Council meeting in Abuja, Tinubu issued the command. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, told reporters about the President's order.
Edun claims that President Tinubu specifically requested that NNPC's 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act be reevaluated.
He gave the Economic Management Team, led by Edun, the responsibility of providing the FEC with practical suggestions regarding the best course of action.
The decision, according to the president, is a component of ongoing reforms that have eliminated economic distortions, improved resilience, restored policy legitimacy, and increased investor confidence. He claims that in vital industries such as manufacturing, oil and gas, infrastructure, and healthcare, these changes have produced a transparent and competitive business climate that is appealing to both domestic and foreign investors.
Reiterating the Renewed Hope Agenda, Tinubu stated that in order to achieve Nigeria's goal of a $1 trillion economy by 2030, growth of at least 7% per year from 2027 is required. He called this aim "not just economic, but a moral imperative," since more growth is the most reliable way to combat poverty.
Citing the July 2025 International Monetary Fund Article IV report, he claimed that it supported Nigeria's economic course and the necessity of development driven by investment.
The President cited the Renewed Hope Ward Development Programme as an example of grassroots empowerment. This ward-based program, which spans all 8,809 wards nationwide, aims to uplift economically active citizens by implementing micro-level poverty reduction strategies in partnership with private partners, states, and local governments.
Tinubu emphasized that maximizing "every available naira" is essential, particularly in light of the current global liquidity limitations, and pointed out that public investment only makes up 5% of GDP due to poor savings.
According to Edun, macroeconomic indicators were becoming better, including declining inflation, rising revenues, a more stable exchange rate, and debt-to-GDP ratios that were now within range. "The President's directive aims to quickly raise public sector savings by reviewing deductions and retention practices," he said, describing savings as the cornerstone of investment.
According to Edun, he presented two memoranda before the Council: a plan to refinance N4 trillion in outstanding energy sector obligations and a $125 million Islamic Development Bank funding for infrastructure in Abia State, which includes 126 kilometers of highways in Aba and 35 kilometers in Umuahia.
The Debt Management Office and other organizations will coordinate the first phase of the power debt resolution, which is anticipated to be completed in three to four weeks.