RMAF Boss Hails Executive Order on Direct Remittance of Oil, Gas Revenues to Federation Account
Naija News • Feb 20
**Oil and Gas Revenues to Flow Directly into Federation Account**
In a major boost to the nation's revenue generation, President Bola Ahmed Tinubu has taken a bold step by signing an Executive Order that directs the direct remittance of oil and gas revenues to the Federation Account. This move is seen as a game-changer in restoring transparency and eliminating revenue leakages that have long plagued the country's finances.
According to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), this presidential directive is a constitutionally grounded and fiscally transformative intervention that will strengthen the revenue base of the three tiers of government. The commission's chairman, Dr. Mohammed Bello Shehu, hailed the President's move as a timely and necessary step to address the pressing fiscal demands facing the nation.
Prior to the Executive Order, significant portions of oil and gas revenues were being siphoned off through multiple deductions, including management fees and other layered charges. These deductions not only reduced net remittances to the Federation Account but also constrained fiscal capacity across the federal, state, and local governments. The commission has consistently advocated for the review of statutory and regulatory provisions that create opportunities for revenue leakage, and the Executive Order has now decisively addressed these structural concerns.
By freeing revenues previously subjected to layered deductions and fragmented oversight, the Executive Order enhances transparency, improves cash flow predictability, and strengthens fiscal federalism. This reform will also restore the constitutional revenue rights of the Federal, State, and Local Governments, thereby enhancing the RMAFC's ability to discharge its constitutional mandate.
The implications of this Executive Order are far-reaching. It will help to strengthen the nation's revenue architecture, close structural leakages, and eliminate duplicative deductions. This, in turn, will lead to improved fiscal management, increased transparency, and better accountability in the management of oil and gas revenues. As the nation continues to grapple with pressing fiscal demands, this reform is seen as a major step in the right direction.