The Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), has announced that President Bola Ahmed Tinubu is set to transmit a formal proposal to the National Assembly to amend the Petroleum Industry Act (PIA). The move is designed to align the nation’s oil and gas legal framework with Nigeria’s evolving economic landscape.
The disclosure was made during a high level committee session on Thursday, where the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Economic Planning, Atiku Bagudu, defended the 2026 budget proposals. The meeting also included heads of the Nigeria Revenue Service, the Nigerian Customs Service, and the Office of the Attorney-General.
The proposed legislative review follows President Tinubu’s recent Executive Order, which mandates the direct remittance of oil and gas revenues including royalty, tax, and profit oil into the Federation Account. Senator Musa emphasized that while the Executive Order is a critical step toward transparency, the PIA requires specific amendments to fully support the administration’s revenue generation goals.
“When the President signed the Executive Order, the assumption was an immediate influx of government revenue,” Senator Musa stated. “However, we have not yet transitioned to our target levels. To bridge this gap, Mr. President will be bringing the PIA forward for amendment.”
Key Objectives of the Reform
The upcoming amendments aim to:
Integrate Executive Directives: Formalize the direct remittance of oil and gas proceeds to the Federation Account.
Streamline Revenue: Address the recent discontinuation of the 30% Frontier Exploration Fund and the 30% NNPCL management fee on profit oil/gas.
Fiscal Planning: Incorporate new revenue projections and fiscal adjustments into the framework for the 2026 National Budget.
Restore Constitutional Entitlements: Ensure federal, state, and local governments receive their full constitutional shares by curbing excessive deductions.
While the PIA (enacted in 2021) was a landmark achievement in reforming the sector’s governance, the Committee acknowledged the diverse feedback from industry players. Despite recent concerns raised by labor groups regarding investor confidence, the Committee maintains that these legislative adjustments are necessary to safeguard national interests and ensure the commercial viability of the sector under current global economic pressures.
The Senate Committee on Finance remains committed to working collaboratively with the Executive to ensure the legislative process is swift, transparent, and beneficial to all Nigerians.
