NEITI Commends Tinubu Order on Oil Revenue Remittance 1095

In Nigeria, the Nigeria Extractive Industries Transparency Initiative on Friday described President Bola Tinubu’s Executive Order 9 mandating the direct remittance of oil and gas revenues into the Federation Account as the culmination of two decades of reform advocacy aimed at blocking leakages and strengthening fiscal transparency. In a statement issued by NEITI on Friday, the agency commended the President for signing the Executive Order on February 13, 2026, saying the directive represents a decisive intervention to safeguard revenues from tax oil, profit oil, profit gas, royalty oil, and all government entitlements under Production Sharing Contracts, profit-sharing arrangements and risk service contracts. Under the new order, all operators are required to remit royalty oil, tax oil, profit oil, profit gas and other government entitlements directly into the Federation Account, a move designed to curb wasteful expenditure and eliminate revenue leakages. The Executive Secretary of NEITI, Hon. Musa Sarkin Adar, described the development as a watershed in Nigeria’s extractive sector governance. “This is a bold step in the ongoing fiscal reforms to improve financial transparency, strengthen accountability systems and mobilise resources for the much-needed development for the benefit of citizens,” he stated. He noted that the presidential directive aligns squarely with Section 162 of the 1999 Constitution, which mandates that all revenues accruing to the Federation be paid into the Federation Account. “For the past twenty years since NEITI began exercising its oversight responsibilities as mandated by law, the agency has consistently recommended that all revenues accruable to government are paid into the Federation Account in accordance with constitutional provisions,” Sarkin Adar stated. He added, “We have also consistently advocated that such revenues be managed transparently and efficiently for the benefit of Nigerians. This directive is therefore not only constitutional but also consistent with global best practices in extractive sector governance.” Sarkin Adar recalled that in a special report published by NEITI in 2017 titled ‘Unremitted Funds, Economic Recovery and Oil Sector Reform’, the agency uncovered that more than $20bn due to the Federation had yet to be remitted at the time. “NEITI found that the non-remittance of over $20bn was a significant contributor to government’s fiscal challenges. These revelations led to high-level engagements between the executive and the legislature with NEITI to explore recovery options and introduce reforms to end the practice,” he stated. JAMB stated him, Executive Order 9 should be seen as the actualisation of a major milestone in Nigeria’s implementation of the Extractive Industries Transparency Initiative standards. He, however, stressed that while the presidential directive is commendable, the Petroleum Industry Act remains the principal legislation governing the oil and gas sector and may require amendments to align with the new reforms. “We recognise that the Petroleum Industry Act, which was achieved after more than two decades of painstaking efforts by stakeholders, remains the primary legislation for the oil and gas industry. NEITI’s relentless commitment to the enactment of the PIA is well documented,” he stated. He continued, “The cardinal objectives of transparency, efficiency and accountability, which informed NEITI’s advocacy for that legislation, are being advanced by this presidential directive. We therefore call on Mr President, the National Assembly and other stakeholders to facilitate the speedy amendment of relevant sections of the PIA 2021 to bring the principal legislation up to date with the new reforms and current realities.” The NEITI boss reiterated the agency’s readiness to work with anti-corruption bodies, development partners and other stakeholders to consolidate the gains from the directive. “Our objectives and expectations will continue to be based on our institutional mandate and support for the transparent, accountable and efficient management of Nigeria’s mineral resources for the benefit of Nigerians represented by the federating units,” he stated. For years, concerns have trailed the remittance of oil and gas revenues in Nigeria, with audit reports repeatedly flagging discrepancies between what was due to the Federation and what was actually paid. Before the Petroleum Industry Act was enacted in 2021, revenue flows under Production Sharing Contracts and other arrangements were often criticised for opacity and weak oversight mechanisms. Executive Order 9 now seeks to close those gaps by mandating direct remittance of government entitlements into the Federation Account, thereby strengthening federal, state and local government revenues that depend heavily on oil receipts. Stakeholders say the success of the directive will depend on strict enforcement, inter-agency coordination and legislative alignment to ensure that the reforms translate into tangible fiscal improvements for the country.