Tinubu Executive Order on oil , gas revenue ll enhance transparency - CMAN

blueprint.ng · Feb 20, 2026 · Collected from GDELT

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Spread the word The Capital Market Academics of Nigeria (CMAN) has commended President Bola Ahmed Tinubu for his bold and historic decision to restore 60% of the proceeds from oil and gas profit under Production Sharing Contracts (PSCs) back to the Federation Account. This is just as President Tinubu signed an Executive Order (EO) that realigns oil and gas revenue flows with constitutional requirements. The EO seeks to strengthen fiscal transparency, clarify regulatory mandates, and enhance revenues accruing to the Federation from the oil and gas sector. In a statement signed by CMAN President, Prof Uche Uwaleke, the move will further strengthen Nigeria’s drive towards fiscal transparency and equity in revenue distribution. According to CMAN, the EO was the most courageous reform of President Bola Tinubu’s administration. “Since 2021, when the Petroleum Industry Act (PIA) was implemented, the Federation Account shared by the Federal, State, and Local Governments, recently minced only 40% of these proceeds, while the Nigerian National Petroleum Company Limited (NNPCL) retained 60% through the Frontier Exploration Fund (30%) under their expenditure oversight and a management fee of 30%. “This imbalance undermined the principle of collective ownership of national resources. By correcting this anomaly, the President has ensured that all tiers of government benefit equitably from the nation’s oil and gas wealth. “CMAN further notes that as a limited liability company, NNPCL must operate independently on its own revenues rather than relying on public funds. The President’s decision is a bold move in this direction. However, CMAN emphasizes that the reform process should continue, particularly with regard to Joint Venture (JV) assets, which should also be returned to the Federation Account. “This development is a victory for the Federation Accounts Allocation Committee (FAAC) and for fiscal justice in Nigeria. It will significantly boost revenues available to all tiers of government, thereby enhancing their capacity to deliver services to the people, generate economic activities, and boost the capital markets. “CMAN stands firmly behind this decision and calls on all stakeholders to support the President’s reform agenda. We remain committed to advocating for policies that strengthen transparency, accountability, and fairness in the management of Nigeria’s resources. “CMAN also underscores the importance of including the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) on the Committee overseeing the implementation of the Executive Order, to ensure transparency and accountability,” Uwaleke said. Meanwhile, the EO, which reinforces the provisions of the 1999 Constitution of the Federal Republic of Nigeria, vests ownership of mineral resources in the Federation and requires that all revenues derived from those resources be paid into the Federation Account for appropriation in accordance with established constitutional and statutory rules. In line with these principles, the Order addresses certain fiscal and structural arrangements introduced under the Petroleum Industry Act (PIA) 2021 that have resulted in off-budget allocations and deductions from Federation revenues. Specifically, the Executive Order: Suspends the collection of management fees and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPCL); Directs that taxes, royalties, and profit oil under Production Sharing Contracts be remitted directly by contractors to the appropriate fiscal authorities; Suspends the payment of gas flare penalties into the Midstream Gas Infrastructure Fund; Clarifies the delineation of responsibilities between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), providing greater regulatory certainty for operators and investors; and Establishes an inter-agency implementation committee, chaired by the Hon Minister of Finance and Coordinating Minister of the Economy, to ensure coordinated and seamless execution. “The Order has become both necessary and urgent considering the sustained decline in oil and gas revenue inflows into the Federation Account, despite improvements in production levels and favourable market conditions. This shortfall has constrained the government’s capacity to meet budgetary obligations and to finance critical public investments in education, healthcare, and infrastructure,” according to a statement from the Federal Ministry of Finance. Spread the word