By Seun Ibiyemi
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has endorsed the recent Executive Order signed by Bola Ahmed Tinubu directing that oilExecutive order: Tinubu direct oil, gas revenue remittance to federation account and gas revenues be paid directly into the Federation Account.
The Commission described the directive as a landmark decision that will enhance transparency, block revenue leakages, and increase funds available to the federal, state, and local governments.
Chairman of the Commission, Mohammed Bello Shehu, said the Executive Order is firmly grounded in constitutional provisions and represents a significant step toward strengthening public finances across all tiers of government.
According to him, the directive aligns with constitutional provisions that vest ownership and control of Nigeria’s mineral resources in the Federal Government for the benefit of all citizens.
Shehu explained that prior to the issuance of the order, certain structural and legal provisions under the Petroleum Industry Act allowed multiple deductions from oil and gas revenues before remittance into the Federation Account.
These deductions, he noted, included management fees, allocations for frontier exploration, and other charges that reduced the final amount available for distribution and limited the spending capacity of governments.
“RMAFC wishes to state that the Commission has consistently advocated the review of statutory and regulatory provisions that create opportunities for revenue leakage, erosion, or retention outside the Federation Account, as evidenced by the recent retreat held on February 9, 2026, in Enugu State.
The Executive Order has now decisively addressed these structural concerns,” Shehu said.
He noted that the reform comes at a critical time when Nigeria faces significant financial demands in security, infrastructure, education, healthcare, energy transition, and economic stabilisation.
By eliminating layered deductions and fragmented oversight, he said, the directive would improve clarity in revenue flows, enhance predictability of government income, strengthen fiscal federalism, and restore the revenue rights of the three tiers of government.
“With this Executive Order, the constitutional architecture of revenue remittance is strengthened. It closes structural leakages, eliminates duplicative deductions, and ensures that revenues due to the Federation are remitted transparently.
This directly supports the Commission’s oversight and monitoring responsibilities,” he added.
Shehu further assured that the Commission would continue collaborating with relevant institutions to ensure proper implementation of the order and safeguard the Federation Account for the benefit of Nigerians nationwide.
The Commission reiterated its commitment to supporting reforms aimed at improving public financial management, enhancing accountability, and aligning Nigeria’s revenue system with global best practices.
