President Bola Ahmed Tinubu has signed a new directive requiring all oil and gas revenues owed to the government to be paid directly into the federation account, marking a major fiscal reform in Nigeria.
The move is part of broader efforts to improve transparency, reduce financial leakages, and ensure the country fully benefits from its natural resource wealth. According to the presidency, the order mandates that proceeds from oil and gas operations, including royalties, taxes, and other statutory payments, be remitted directly without diversion or delay.
For years, concerns have been raised about revenue losses in Nigeria’s petroleum sector due to complex payment systems and weak oversight. Analysts say the new directive could help address these longstanding issues by centralizing revenue flows into the federation account, where funds are shared among federal, state, and local governments.
Officials believe the policy will strengthen fiscal discipline as Nigeria faces mounting economic pressure from rising debt costs, subsidy reforms, and currency challenges. By tightening control over oil income, authorities hope to improve public spending and rebuild investor confidence.
The directive also aligns with ongoing reforms in the energy sector aimed at improving regulation and attracting investment. Experts say predictable and transparent revenue management will be crucial as Nigeria seeks to remain competitive in a rapidly changing global energy market.
While economists have welcomed the announcement, they stress that success will depend on strong enforcement and oversight. Effective monitoring, transparent reporting, and institutional accountability will determine whether the reform yields genuine financial benefits.
If fully implemented, the order could mark a turning point in how Nigeria manages its oil wealth, potentially strengthening fiscal stability and supporting long-term economic planning.
