LunagisthubNigeria’s Oil Revenue Game-Changer: Tinubu’s Executive Order 9 Has Sent Shockwaves.
President Bola Tinubu’s Executive Order 9 has sent shockwaves through Nigeria’s extractive sector, mandating direct remittance of oil and gas revenues into the Federation Account. The Nigeria Extractive Industries Transparency Initiative (NEITI) hails this move as a culmination of two decades of reform advocacy, aimed at blocking leakages and strengthening fiscal transparency.
For years, Nigeria’s oil revenue management has been plagued by discrepancies, with audit reports flagging unremitted funds. In 2017, NEITI uncovered over $20bn in unremitted revenues, contributing to fiscal challenges.
Executive Order 9 requires operators to remit royalty oil, tax oil, profit oil, and other government entitlements directly into the Federation Account. This move is expected to curb wasteful expenditure, eliminate revenue leakages, and boost fiscal transparency.
The order aligns with Section 162 of the 1999 Constitution and global best practices in extractive sector governance. NEITI sees this as a significant milestone, but notes that the Petroleum Industry Act may require amendments to align with the new reforms.
How will this executive order impact Nigeria’s oil revenue management? Will it lead to increased transparency and accountability?
Lunagisthub
