The Revenue Mobilisation Allocation and Fiscal Commission has said President Bola Tinubu’s recent Executive Order on the direct remittance of oil and gas revenues will strengthen inflows into the Federation Account and curb long-standing leakages.

The Commission, in a statement issued on Friday by its Chairman, Dr Mohammed Shehu, commended the President for what it described as a decisive intervention in the management of oil and gas revenues.

Shehu said the Executive Order directing the direct remittance of oil and gas revenues to the Federation Account was “a bold, constitutionally grounded, and fiscally transformative intervention aimed at restoring transparency, eliminating revenue leakages, and strengthening the revenue base of the three tiers of government.”

According to the statement, the Executive Order was signed pursuant to Section 5 of the 1999 Constitution, as amended, and anchored on Section 44(3), which vests ownership, control and derivative rights in all minerals, mineral oils and natural gas in the Government of the Federation for the collective benefit of Nigerians.

The Commission noted that, prior to the order, certain structural and legal provisions in the Petroleum Industry Act created channels through which substantial Federation revenues were subject to multiple deductions.

It stated, “Before this Executive Order, several structural and legal provisions within the Petroleum Industry Act created channels through which substantial Federation revenues were subject to multiple deductions, including management fees, frontier exploration allocations, and other layered charges.

“These deductions significantly reduced net remittances to the Federation Account and constrained fiscal capacity across the federal, state, and local governments.”

RMAFC added that it had consistently advocated the review of statutory and regulatory provisions that created opportunities for revenue leakage, erosion or retention outside the Federation Account.

It referenced a recent retreat held on February 9, 2026, in Enugu State, where such concerns were discussed, noting that the Executive Order had now “decisively addressed these structural concerns.”

The Commission described the reform as timely, given the country’s fiscal pressures, including funding for security, infrastructure, education, healthcare, energy transition and economic stabilisation.

It said that by freeing revenues previously subjected to layered deductions and fragmented oversight, the Executive Order would enhance transparency, improve cash flow predictability and strengthen fiscal federalism.

Shehu further stated, “With this Executive Order, the constitutional architecture of revenue remittance is strengthened. It closes structural leakages, eliminates duplicative deductions, and ensures that revenues due to the Federation are remitted transparently. This directly supports the Commission’s oversight and monitoring responsibilities.”

He added that the reform would significantly enhance the Commission’s ability to discharge its constitutional mandate under Paragraph 32 of Part I of the Third Schedule to the Constitution, particularly in monitoring the accruals to and disbursement of revenue from the Federation Account.

RMAFC reiterated its support for the Federal Government’s public financial management reforms and pledged to work with relevant institutions to ensure effective implementation of the Executive Order and safeguard the integrity of the Federation Account for the benefit of Nigerians.