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Tinubu’s Executive Order on oil, gas revenues will strengthen federation account – Official

Naija News • Feb 23
Tinubu’s Executive Order on oil, gas revenues will strengthen federation account – Official
**Tinubu's Executive Order to Safeguard Nigeria's Oil and Gas Revenues: A Boost for the Federation Account** Nigeria's economy has long been plagued by revenue leakages in the oil and gas sector, resulting in significant losses for the federation account. However, with the issuance of the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026, President Tinubu has taken a major step towards strengthening the nation's fiscal architecture. At a recent Federation Account Allocation Committee (FAAC) meeting, Minister of State for Finance, Doris Uzoka-Anite, hailed the Executive Order as a game-changer for the federation account. She noted that the order will not only reinforce revenue discipline in the oil and gas sector but also reduce leakages, ultimately boosting the FAAC's distributable income. The minister emphasized that the order will create a broader tax base and ensure that constitutionally due revenues are fully remitted, thereby strengthening the FAAC. Uzoka-Anite also stressed the need for improved fiscal coordination to ensure that increased revenue does not upset the country's macroeconomic stability. She warned that sudden liquidity injections across all tiers of government could generate inflationary pressures, exchange rate pressure, asset price distortions, and inflationary risks. The minister emphasized that the task of the FAAC is not only to distribute revenue but also to safeguard macroeconomic stability. One of the key implications of the Executive Order is the retrospective audit of the Frontier Exploration Fund, the Midstream & Downstream Gas Infrastructure Fund, and NNPC management fee deductions. This audit may result in recoveries that could provide a one-off fiscal boost to the federation account. Uzoka-Anite emphasized that the order reaffirms a simple constitutional principle that all revenues accruing to the Federation belong first in the Federation Account. In conclusion, the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026, marks a significant milestone in Nigeria's efforts to strengthen its fiscal architecture. With this order, President Tinubu has taken a major step towards reducing revenue leakages and boosting the federation account. However, as Uzoka-Anite emphasized, it is essential that the country adopts a structured mechanism to manage higher inflows responsibly to maintain macroeconomic stability.
Source: Original Article. AI-enhanced version.