The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has thrown its weight behind President Bola Tinubu’s executive order directing that all oil and gas revenues be remitted directly to the Federation Account.
In a statement released on Friday, RMAFC Chairman Dr. Mohammed Shehu described the order as a bold and constitutionally grounded step aimed at improving transparency, preventing revenue leakages, and boosting the financial capacity of all tiers of government.
Shehu explained that prior to the order, some provisions in the Petroleum Industry Act allowed multiple deductions from federation revenues, including management fees and allocations for frontier exploration. These deductions, he said, limited the funds reaching the Federation Account and affected federal, state, and local government budgets.
“The executive order addresses these structural issues, ensures revenues are remitted transparently, and strengthens fiscal federalism,” Shehu said. He added that the move would also enhance RMAFC’s oversight role under the Constitution.
According to analyses of 2025 revenue inflows, the reform could increase revenue allocations to federal, state, and local governments by an estimated N14.57 trillion.
The commission pledged to collaborate with relevant agencies to ensure the effective implementation of the order, safeguarding the integrity of federation revenues for the benefit of Nigerians.
