The Capital Market Academics of Nigeria (CMAN) has praised Bola Tinubu’s Executive Order mandating the direct remittance of oil and gas revenues to the Federation Account.
In a statement issued in Abuja, CMAN President Uche Uwaleke described the directive as one of the most courageous reforms of the administration, saying it strengthens fiscal transparency and promotes equitable revenue distribution among the three tiers of government.
Uwaleke noted that since the implementation of the Petroleum Industry Act in 2021, only 40 per cent of oil proceeds were shared through the Federation Account. Meanwhile, Nigerian National Petroleum Company Limited retained 60 per cent, including allocations to the Frontier Exploration Fund and management fees.
He said the new order corrects this imbalance, boosts revenues available to federal, state and local governments, and enhances their ability to deliver services and stimulate economic activity.
Tinubu, who issued the Executive Order on Feb. 18, said the move aims to curb revenue leakages, eliminate duplicative structures and restore constitutional revenue entitlements. According to his spokesperson, Bayo Onanuga, the reforms will reposition NNPC Ltd. strictly as a commercial enterprise and improve transparency in the sector.
CMAN also called for further reforms, including returning Joint Venture assets to the Federation Account and involving the Revenue Mobilisation, Allocation and Fiscal Commission chairman in overseeing implementation to ensure accountability.
The President added that a comprehensive review of the PIA would be undertaken in consultation with stakeholders to safeguard national budgeting, debt sustainability and economic stability.
