CMAN Applauds Tinubu's Order on Oil Revenue Restoration

The Capital Market Academics Nigeria (CMAN) has praised President Bola Ahmed Tinubu for his Executive Order aimed at restoring 60% of profits from oil and gas product sharing contracts back to the federal account. CMAN President Prof. Uch Uwalek stated that this move will bolster Nigeria's efforts toward fiscal transparency and equitable revenue distribution.

The Executive Order is seen as a courageous reform, especially following the implementation of the Petroleum Industry Act (PIA) in 2021, which altered the federal account sharing among federal, state, and local governments. The recent decision addresses the previous limitation where the Nigerian National Petroleum Company Limited (NNPCL) retained 60% of profits, undermining the principle of collective ownership of national resources.

CMAN emphasized the need for continued reforms, particularly regarding joint venture asset returns to the federal account, which would enhance revenue for government tiers and improve service delivery to the populace.