President Bola Ahmed Tinubu has signed an Executive Order mandating the direct remittance of oil and gas revenues into the Federation Account, a development applauded by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu.

Shehu described the directive as a bold and constitutionally sound reform designed to promote transparency, curb revenue leakages, and strengthen the financial capacity of the federal, state, and local governments.

According to the commission, the Executive Order—issued pursuant to Section 5 and anchored on Section 44(3) of the 1999 Constitution (as amended)—reaffirms that the ownership and control of Nigeria’s mineral resources, including oil and natural gas, reside in the Federal Government for the collective benefit of citizens.

In a statement, RMAFC explained that prior to the order, certain provisions of the Petroleum Industry Act (PIA) allowed multiple deductions from oil revenues, including management fees and frontier exploration allocations. These deductions, the commission noted, significantly reduced the net funds accruing to the Federation Account, thereby limiting fiscal resources available to all three tiers of government.

The commission stated that it had consistently advocated reforms to eliminate statutory and regulatory loopholes that permitted revenue retention or deductions outside the Federation Account. It referenced its recent retreat held on February 9, 2026, in Enugu State, where such concerns were extensively discussed.

Shehu maintained that the Executive Order directly addresses these structural challenges, describing the reform as both timely and necessary given the country’s pressing financial demands in areas such as security, infrastructure, education, healthcare, energy transition, and economic stabilisation.

He added that by eliminating layered deductions and fragmented oversight, the directive improves transparency, enhances revenue predictability, strengthens fiscal federalism, and restores constitutional revenue entitlements to all levels of government.

The RMAFC chairman further noted that the reform bolsters the commission’s constitutional mandate under Paragraph 32 of Part I of the Third Schedule to the Constitution, particularly in monitoring revenue accruals and disbursements from the Federation Account.

“With this Executive Order, the constitutional framework for revenue remittance is reinforced. It closes structural gaps, removes duplicative deductions, and ensures full and transparent remittance of funds due to the federation,” Shehu stated.

The commission reiterated its support for the Federal Government’s broader fiscal reforms aimed at improving public financial management, strengthening accountability, and aligning Nigeria’s revenue administration with global best practices.