The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission RMAFC has said that President Bola Tinubu Executive Order on oil revenue administration will translate into increased earnings for the Federal Government FG, states, and local governments LG. The commission stated that the directive is designed to strengthen transparency, plug revenue leakages, and improve remittances from the oil and gas sector.
According to the RMAFC leadership, the Executive Order introduces tighter reporting obligations for relevant agencies and operators within the petroleum value chain. It is also expected to enhance monitoring of production volumes, royalty payments, and profit declarations. Officials argue that improved coordination among regulatory bodies will ensure that statutory allocations due to the federation account are accurately computed and distributed.
Nigeria oil revenue has historically been vulnerable to under reporting, inefficiencies, and governance gaps. Analysts note that the Executive Order aligns with broader fiscal reforms aimed at boosting non oil revenue while maximising returns from hydrocarbon resources. The RMAFC boss said early projections indicate that stricter compliance and data reconciliation mechanisms could significantly improve monthly inflows into the federation account.
State governments, many of which depend heavily on federal allocations, have welcomed the move. Finance commissioners in several states expressed optimism that enhanced oil revenue accountability would ease budgetary pressures and support infrastructure and social programmes.
Economic experts, however, caution that policy implementation will be critical. They stress that technology driven monitoring, independent audits, and sustained political will are necessary to achieve the desired outcomes. Without consistent enforcement, they warn, reform gains could erode over time.
The commission reaffirmed its commitment to working with relevant ministries and agencies to ensure that the Executive Order delivers measurable fiscal benefits across all tiers of government.
