The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have commended President Bola Tinubu for ordering direct remittance of oil and gas revenues to the federation account, describing it as a major fiscal reform.

RMAFC’s chairman, Mohammed Shehu, in a statement on Saturday described the executive order as bold, constitutionally grounded and capable of improving transparency and accountability in revenue management.

Mr Shehu said the directive would help eliminate leakages and strengthen the revenue base of federal, state and local governments.

He explained that the order aligned with constitutional provisions governing ownership and control of mineral resources for the collective benefit of Nigerians.

According to him, previous frameworks allowed multiple deductions that reduced remittances into the federation account.

Mr Shehu listed such deductions to include management fees, frontier exploration allocations and other charges.

He said the deductions constrained fiscal capacity across all tiers of government, adding that the commission had consistently advocated reforms to address revenue leakages and improve remittance processes.

Mr Shehu described the reform as timely in view of increasing national demands, including security, infrastructure, education, healthcare and economic stabilisation.

‘’The directive will improve transparency and predictability in government revenue flows; it will also strengthen fiscal federalism and restore constitutional revenue rights.

“The reform enhances the commission’s capacity to monitor revenue accruals and disbursement, as well as supporting the commission’s constitutional oversight responsibilities,” he said.

Mr Shehu reaffirmed the commission’s support for ongoing public financial management reforms, noting that the RMAFC would continue to collaborate with relevant institutions to ensure effective implementation.

Similarly, PETROAN described the executive order as a reform-driven step to boost accountability and investors’ confidence in Nigeria’s energy sector.

Billy Gillis-Harry, national president of PETROAN, reacting to the development on Saturday, said the order compelling the Nigerian National Petroleum Company Limited to remit revenues directly to the federation account aligned with global best practices and would reinforce NNPC’s transformation into a commercially disciplined company.

Mr Gillis-Harry, said transparent revenue management was critical to improving Nigeria’s economic credibility and attractiveness to both local and foreign investors.

He described the executive order as a courageous decision that strengthens accountability while deepening reforms within the oil and gas industry.

Mr Gillis-Harry reaffirmed PETROAN’s readiness to collaborate with the Federal Government and relevant regulatory institutions to ensure the order promotes energy security, safeguards jobs, and delivers long-term stability.

Mr Tinubu signed Executive Order No. 9 of 2026 on February 13, aimed at strengthening fiscal discipline and promoting transparency in Nigeria’s oil and gas revenue management.

The order mandates that all oil and gas revenues due to the federation, including royalty oil, tax oil, profit oil, and profit gas, be paid directly into the federation account.

It suspends certain revenue retention mechanisms under the Petroleum Industry Act (PIA) 2021, including the 30 per cent Frontier Exploration Fund, 30 per cent NNPC Ltd. management fee on profit oil and profit gas.

It also includes redirecting gas flare penalties to the federation account.

(NAN)