The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has lauded President Bola Tinubu's recent Executive Order aimed at improving financial flows into the Federation Account by ensuring direct remittance of oil and gas revenues. The Chairman, Dr Mohammed Shehu, highlighted the Executive Order as a major step towards fiscal reform that seeks to restore transparency and accountability in revenue collection. By curbing longstanding leakages, the order is expected to significantly enhance the financial resources available to the federal, state, and local governments across Nigeria.

Dr Shehu noted that the order is constitutionally permissible, being rooted in the 1999 Constitution of Nigeria, which enshrines the ownership and control of mineral resources by the government. The initiative is seen as not just a regulatory move but a transformative approach that aligns with broader fiscal policies aimed at ensuring that all tiers of government benefit equitably from the country’s natural resources. This decisive move comes at a time when there is a pressing need for increased financial management and compliance within the oil and gas sector, which has historically been plagued by reported diversions of funds.

The implications of this Executive Order could be profound, potentially directing billions of naira into the Federation Account, thus enabling better governance through improved funding for public services and infrastructure development. As stakeholders anticipate the practical applications of this order, it will be crucial to monitor its effectiveness in achieving the ambitious goals it sets out, particularly in enhancing governmental revenues and curbing inefficiencies in Nigeria's fiscal landscape.