A chieftain of the All Progressives Congress, Chief Uche Nwosu, has commended President Bola Tinubu for signing an executive order directing that revenues generated by the Nigerian National Petroleum Company Limited (NNPCL) be remitted directly into the Federation Account before any allocation is made to the company.
Nwosu, who previously served as Chief of Staff to former Imo State Governor Rochas Okorocha, described the directive as a landmark reform aimed at promoting fiscal discipline, transparency, and accountability in the management of Nigeria’s oil and gas resources.
According to him, the executive order represents a bold and necessary restructuring of how petroleum revenues are handled in the country. He noted that for years, there have been persistent calls from citizens and stakeholders for greater clarity in the management of oil earnings, given the central role of crude oil revenues in funding government operations at all levels.
Nwosu stated that by mandating NNPCL to pay its revenues into the Federation Account before any deductions or disbursements, the President has established a framework that strengthens institutional oversight and enhances public scrutiny. He said the move would ensure that the exact amount earned from oil production becomes more transparent, thereby fostering greater trust between the government and the Nigerian people.
He further explained that aligning oil revenue flows with constitutional provisions governing the Federation Account would improve accountability mechanisms within the public finance system. In his view, the reform reflects a commitment to strengthening institutions and promoting responsible fiscal management.
The executive order forms part of a broader reform initiative designed to safeguard revenues accruing to the Federation from oil and gas operations. As part of the directive, the President also suspended the collection of management and frontier exploration fees by NNPCL, a move seen as an effort to curb deductions at source and plug potential leakages.
Under the new arrangement, taxes, royalties, and profit oil due under Production Sharing Contracts are to be remitted directly to the appropriate fiscal authorities. This measure effectively blocks the practice of making deductions before remittance, a process that critics have long argued reduced transparency and weakened inflows into the Federation Account.
Nwosu described the decision as a courageous step that signals reform-oriented leadership. He said that taking such action demonstrates a willingness to depart from past practices and institute measures that strengthen Nigeria’s public financial management framework.
He also emphasised the potential macroeconomic benefits of the directive, noting that improved transparency in oil revenue remittances would enhance budget planning and revenue forecasting. By ensuring that all constitutionally due funds are properly accounted for, the reform could improve fiscal coordination among the federal, state, and local governments, all of which rely heavily on allocations from the Federation Account.
According to Nwosu, consistent and transparent revenue remittance would help reduce fiscal uncertainty, support more accurate revenue projections, and strengthen intergovernmental fiscal relations. He added that such measures could contribute to more stable economic planning and improved public service delivery across the country.
He urged the President to sustain the momentum of reform, stressing that decisive actions aimed at institutional strengthening and financial transparency are essential for Nigeria’s long-term economic stability and growth.
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