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NEITI backs President’s executive order on oil revenues

Naija News • 1h ago
NEITI backs President’s executive order on oil revenues
**Tinubu's Executive Order: A Beacon of Hope for Nigeria's Oil Sector** Nigeria's extractive industries are ripe for reform, and President Bola Tinubu's Executive Order 9 has sent a strong signal that the era of opacity and leakages in the oil sector is finally coming to an end. The order, which directs the remittance of all oil revenues into the Federation Account, has been hailed as a bold and strategic milestone by the Nigeria Extractive Industries Transparency Initiative (NEITI). This directive is a long-overdue step towards strengthening transparency, accountability, and revenue mobilisation in Nigeria's oil and gas sector. The Executive Order aligns with Section 162 of the Constitution, which mandates that all revenues collected by the government be paid into the Federation Account for equitable distribution among the federating units. For over two decades, NEITI has been advocating for the full remittance of all revenues due to the Federation Account, and this directive marks the realisation of that reform objective. The implications of this order are far-reaching. It has the potential to boost government revenues, reduce opacity in the oil sector, and eliminate wasteful expenditure. The Petroleum Industry Act (PIA), which remains the principal legislation governing Nigeria's oil and gas sector, has laid the foundation for these reforms. However, it is crucial that amendments are made to align certain provisions of the law with emerging fiscal reforms and current operational realities. NEITI's commitment to collaborate with anti-corruption institutions, development partners, and other stakeholders to deepen reforms is a welcome development. As the agency works to ensure the transparent, accountable, and efficient management of Nigeria's extractive resources, it is essential that all stakeholders, including the National Assembly and relevant stakeholders, expedite amendments to the PIA to ensure its effectiveness. The Executive Order is a critical step towards addressing systemic revenue gaps and consolidating reforms in the oil sector. If implemented effectively, it has the potential to significantly boost government revenues and promote transparency and accountability in the extractive industries. It is a beacon of hope for Nigeria's oil sector and a testament to the President's commitment to reform and good governance.
Source: Original Article. AI-enhanced version.