Tinubu's Executive Order Boosts Oil Revenue Transparency

President Bola Ahmed Tinubu signed an Executive Order (EO) to realign oil and gas revenue flow, which aims to enhance fiscal transparency and clarify regulatory mandates. The Capital Market Academ (CMAN), represented by its president Prof.

Uch Uwalek, commended this decision as a bold historical move that restores 60% of oil and gas profit product share contracts back to the federal account. The EO seeks to strengthen revenue accruing to the federal oil and gas sector and correct anomalies in revenue distribution.

It addresses fiscal structural arrangements introduced by the Petroleum Industry Act (PIA) of 2021, which had resulted in off-budget allocations. The EO suspends certain fees and clarifies responsibilities among regulatory bodies, ensuring that revenues are managed effectively.

CMAN emphasized the importance of ongoing reforms, particularly regarding joint venture asset returns to the federal account, which could significantly boost revenue available to various tiers of government, enhancing their capacity to deliver essential services.