Lagos, Feb. 21, 2026 (NAN) Mr Tunji Oyebanji, Chief Executive Officer of 11 Plc, has called for caution in implementing the Federal Government’s directive mandating the direct remittance of oil and gas revenues from Nigerian National Petroleum Company Ltd. into the Federation Account.
Oyebanji made the remarks in an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos.
NAN reports that on Feb. 18, the Federal Government ordered that all remittances due from NNPCL be paid directly into the Federation Account, a move widely seen as part of efforts to strengthen public revenue amid growing fiscal pressures.
Addressing the development, Oyebanji acknowledged the difficult budgetary environment facing the government, noting that authorities are under immense pressure to boost revenue generation in light of rising expenditure commitments.
“I understand that the federal government is really scrambling for revenue because of the expenditure side of the budget.
“They are looking for revenue inflows and trying to block any perceived loopholes or avenues for leakage,” he said.
He explained that the executive order appears to modify certain operational mechanisms within Nigeria’s petroleum revenue framework by requiring that funds previously retained by NNPCL before remittance now be paid directly into the Federation Account.
While describing the government’s intention as understandable, Oyebanji stressed that the operational implications for NNPCL must be carefully evaluated to avoid unintended consequences.
“There needs to be caution.
“We must understand the cash flow requirements of NNPCL so as not to impede its operations.
“It is supposed to run like a commercial entity,”he emphasised.
The expert said that under Nigeria’s reformed petroleum governance structure, NNPCL is expected to operate competitively, meet contractual obligations, finance capital investments, and function with the efficiency of a private-sector corporation.
Oyebanji questioned whether sweeping revenue redirection could inadvertently constrain that commercial mandate.
He asked, “If you take away all the cash it is generating, will it be able to meet its obligations, award contracts, pay contractors, pay salaries, and so on.
“These are critical operational realities.
He further warned that subjecting routine operational spending to prolonged bureaucratic approvals could erode the flexibility required for effective business performance.
“If NNPCL has to seek approvals each time it needs to repair infrastructure, invest, or meet financial commitments, and that process passes through multiple layers of ministry authorisation, delays may become inevitable.
“In that scenario, NNPCL risks becoming just another civil service institution, unable to operate efficiently,” he said.
Oyebanji added that while the drive to strengthen public finances is legitimate and necessary, policymakers must strike a careful balance to ensure reforms do not weaken the operational backbone of most strategic energy institution.
He explained, “It is understandable why the government wants all revenues in its coffers.
“However, focusing particularly on this revenue stream presents concerns, especially regarding how NNPCL will continue to run and manage efficiently.”(NAN)
