RMAFC Hails Tinubu’s Executive Order on Oil and Gas Revenues

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has praised President Bola Tinubu’s Executive Order directing the direct remittance of oil and gas revenues to the Federation Account, describing it as a major step toward improving transparency and reducing long-standing revenue leakages.

In a statement on Friday, RMAFC Chairman Dr. Mohammed Shehu called the move “bold, constitutionally grounded, and fiscally transformative,” noting that it strengthens the revenue base for federal, state, and local governments.

The order, anchored on Sections 5 and 44(3) of the 1999 Constitution (as amended), mandates that royalties, profit oil and gas, taxes, and other payments under production-sharing, profit-sharing, and risk service contracts be remitted directly into the Federation Account.

Dr. Shehu noted that prior provisions in the Petroleum Industry Act allowed multiple deductions, including management fees and frontier exploration allocations, which reduced net remittances. He said the Executive Order addresses these structural gaps, improving cash flow predictability and supporting fiscal federalism.

Estimates suggest the reform could increase allocations to all tiers of government by around N14.57 trillion. This includes N906.91 billion from management fees, N7.55 trillion in royalties, and N611.42 billion in gas flaring penalties, previously collected outside the Federation Account.

The Commission affirmed its support for the Federal Government’s financial management reforms and pledged to ensure effective implementation of the order.