RMAFC backs direct oil revenue remittance order
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has backed the recent Executive Order signed by President Bola Ahmed Tinubu directing that oil and gas revenues be paid directly into
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has backed the recent Executive Order signed by President Bola Ahmed Tinubu directing that oil and gas revenues be paid directly into the Federation Account.
The Commission, while praising President Bola Ahmed Tinubu for the Executive Order, said the decision will improve transparency and increase funds available to all tiers of government.
Chairman of the Commission, Dr. Mohammed Bello Shehu, described the order as a major step grounded in the Constitution that will block revenue leakages and strengthen government finances at the federal, state, and local levels.
He said the directive aligns with constitutional provisions that place ownership and control of Nigeria’s mineral resources in the hands of the federal government for the benefit of all citizens.
According to him, before the order was issued, certain structural and legal provisions under the Petroleum Industry Act allowed multiple deductions from oil and gas revenues before they reached the Federation Account. These included management fees, allocations for frontier exploration, and other charges that reduced the final amount shared by governments and limited their spending capacity.
“RMAFC wishes to state that the Commission has consistently advocated the review of statutory and regulatory provisions that create opportunities for revenue leakage, erosion, or retention outside the Federation Account, as evidenced by the recent retreat held on 9th of February 2026 in Enugu State. The Executive Order has now decisively addressed these structural concerns,” Shehu said.
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He noted that the reform comes at a time when Nigeria faces major financial demands in areas such as security, infrastructure, education, healthcare, energy transition, and economic stabilisation. He explained that by removing layered deductions and fragmented oversight, the directive will make revenue flows clearer, improve predictability of government income, strengthen fiscal federalism, and restore revenue rights of all three tiers of government.
“With this Executive Order, the constitutional architecture of revenue remittance is strengthened. It closes structural leakages, eliminates duplicative deductions, and ensures that revenues due to the Federation are remitted transparently. This directly supports the Commission’s oversight and monitoring responsibilities,” he said.
Shehu added that the development will also help the Commission carry out its constitutional duty of monitoring revenue coming into and being shared from the Federation Account. He said the Commission fully supports ongoing reforms aimed at improving public financial management, increasing accountability, and aligning Nigeria’s revenue system with global standards.
He assured that the Commission will continue to work with relevant institutions to ensure the order is properly implemented and that the Federation Account is protected for the benefit of Nigerians across the country.
