The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commended President Bola Ahmed Tinubu for signing an Executive Order directing the direct remittance of oil and gas revenues to the Federation Account.
In a statement issued by its Chairman, Mr. M. B. Shehu, the Commission described the directive as a bold, constitutionally grounded and fiscally transformative measure aimed at restoring transparency, blocking revenue leakages and strengthening the revenue base of the three tiers of government.
According to RMAFC, the Executive Order, signed pursuant to Section 5 of the 1999 Constitution (as amended) and anchored on Section 44(3), reinforces the constitutional principle that the ownership and control of all minerals, mineral oils and natural gas in Nigeria are vested in the Government of the Federation for the collective benefit of Nigerians.
The Commission noted that prior to the new order, certain structural and legal provisions within the Petroleum Industry Act (PIA) created avenues for multiple deductions from oil and gas revenues before remittance to the Federation Account.
These deductions, including management fees, frontier exploration allocations and other charges, significantly reduced net accruals available for distribution to the Federal, State and Local Governments.
RMAFC stated that it had consistently advocated the review of statutory and regulatory provisions that allow revenue retention or erosion outside the Federation Account.
It referenced a recent retreat held in Enugu where such concerns were raised, adding that the Executive Order has now decisively addressed those structural issues.
The Commission described the reform as timely, especially in view of the country’s pressing fiscal demands in areas such as security, infrastructure, education, healthcare, energy transition and economic stabilisation.
Mr. Shehu emphasised that the directive would enhance transparency, improve predictability of cash flows and strengthen fiscal federalism by ensuring that revenues due to the Federation are remitted in full and without duplicative deductions.
“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,” the Chairman said.
He added that the reform would significantly enhance the Commission’s ability to discharge its constitutional mandate under Paragraph 32 of Part I of the Third Schedule to the Constitution, particularly in monitoring accruals to and disbursement of revenue from the Federation Account.
RMAFC reiterated its support for the Federal Government’s ongoing public financial management reforms and pledged to work with relevant institutions to ensure effective implementation of the Executive Order and safeguard the integrity of the Federation Account for the benefit of all Nigerians.