The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed strong approval for President Bola Tinubu’s Executive Order 9, which mandates the direct remittance of oil and gas revenues into the Federation Account. This initiative is seen as the culmination of nearly two decades of advocacy for reforms aimed at blocking financial leakages within the Nigerian oil sector and enhancing fiscal transparency. NEITI’s statement underscores the significance of this move in the context of sustaining Nigeria’s economic stability through better revenue management.

The Executive Order, signed on February 13, 2026, directs all operators in the oil and gas sector, including those involved in Production Sharing Contracts and risk service contracts, to ensure that revenues such as royalty oil, tax oil, profit oil, and profit gas are paid directly into the Federation Account. This policy shift is a critical step toward curtailing wasteful expenditure and addressing the chronic issues of revenue leakages that have plagued the industry for years. NEITI has emphasized that this intervention will help safeguard essential public revenues that are vital for the country's development.

The broader implications of this Executive Order could be substantial for Nigeria, a nation where oil revenues play a pivotal role in government funding and economic growth. By enforcing direct remittances, the government aims not only to enhance transparency in the financial dealings of the oil sector but also to restore public trust in the management of national resources. Ultimately, this executive action represents a significant move towards fiscal responsibility, which could potentially lead to improved economic outcomes for the country, provided it is implemented effectively and monitored rigorously.