By Ambrose Nnaji
The Nigeria Extractive Industries Transparency Initiative (NEITI) has applauded President Bola Ahmed Tinubu for issuing Executive Order 9, directing that all revenues accruing to the Federal Government from tax oil, profit oil, profit gas, royalty oil, and other government entitlements under production sharing, profit-sharing and risk service contracts be remitted directly into the Federation Account.
The Executive Order, signed on February 13, 2026, is designed to safeguard oil and gas earnings, curb leakages and eliminate wasteful expenditure by ensuring that all operators transfer statutory revenues straight to the constitutionally recognised Federation Account.
In a statement, NEITI’s Executive Secretary, Musa Sarkin Adar, described the directive as “a bold and strategic milestone” in Nigeria’s ongoing fiscal reform agenda aimed at strengthening transparency, accountability and revenue mobilisation.
According to him, the presidential order aligns squarely with Section 162 of the Constitution, which mandates that all revenues collected by the government be paid into the Federation Account for equitable distribution among the federating units.
“For over two decades of our oversight work, NEITI has consistently recommended the full remittance of all revenues due to the Federation Account in line with constitutional provisions,” Sarkin Adar stated. “This directive reflects the realisation of that long-standing reform objective.”
He recalled that NEITI’s 2017 special report titled Unremitted Funds, Economic Recovery and Oil Sector Reform uncovered over $20 billion in revenues owed to the Federation but yet to be remitted at the time — a development that significantly strained government finances and triggered high-level engagements between the executive, legislature and oversight bodies.
The NEITI boss said the new order marks a critical step in addressing systemic revenue gaps and consolidating reforms introduced under the Petroleum Industry Act (PIA), which remains the principal legislation governing Nigeria’s oil and gas sector.
While affirming NEITI’s longstanding advocacy that contributed to the enactment of the PIA, Sarkin Adar urged the National Assembly and relevant stakeholders to expedite amendments to align certain provisions of the law with emerging fiscal reforms and current operational realities.
“The core objectives of transparency, efficiency and accountability that shaped NEITI’s advocacy for the PIA are being advanced through this directive,” he noted.
He reiterated the agency’s commitment to collaborate with anti-corruption institutions, development partners and other stakeholders to deepen reforms and ensure the transparent, accountable and efficient management of Nigeria’s extractive resources for the benefit of all federating units and citizens.
Analysts say the Executive Order, if effectively implemented, could significantly boost government revenues, reduce opacity in oil remittances and improve fiscal stability at a time when Nigeria is intensifying efforts to strengthen its public finance framework.
