…It’s consistent with NEITI Audit recommendations.
The Nigeria Extractive Industries Transparency Initiative (NEITI) has commended President Bola Ahmed Tinubu for issuing an Executive Order 9 mandating the direct remittances of all revenues accruable to the government from tax oil, profit oil, profit gas, and royalty oil from Production Sharing Contracts, profit sharing, and risk service contracts to the Federation Account.
The Executive Order 9 issued by the President and Commander-in-Chief of the Armed Forces of Nigeria, Bola Ahmed Tinubu, on 13th February, 2026 which is aimed at safeguarding and enhancing oil and gas revenues for the federation.
The Executive Order also seeks to curb wasteful expenditures and reduce leakages by requiring all operators to remit royalty oil, tax oil, profit oil, profit gas and all government entitlements directly to the federation account.
In a statement issued from NEITI House, the Executive Secretary, Honourable Musa Sarkin Adar, described the development as “a bold step in the on-going fiscal reforms to improve financial transparency, strengthen accountability systems and mobilise resources for the much-needed development for the benefit of the citizens.”
Hon. Sarkin Adar observes that the presidential directive is consistent with both the text and intention of Section 162 of Nigeria’s constitution.
He explained that “For the past twenty years since NEITI began exercising oversight responsibilities, as mandated by law, the agency has consistently recommended that ALL revenues accruable to the government are paid into the Federation Account in accordance with the provisions of the constitution, and that the remitted revenues are managed transparently for the benefit of Nigerians.
He highlighted that in a special report published by NEITI in 2017 titled “Unremitted Funds, Economic Recovery and Oil Sector Reform”, NEITI found that more than $20 billion of remittances due to the Federation were yet to be remitted to government. NEITI found that this non-remittance was a significant contributor to government’s fiscal challenges. These revelations led to the government’s high-level engagement, by both the executive and legislature, with NEITI to explore the recovery of these funds and to consider necessary reforms to end the practice.
Hon. Sarkin Adar affirmed that this presidential directive is therefore seen as the actualization of a major milestone of EITI implementation in Nigeria.
He noted that “NEITI recognizes that the Petroleum Industry Act, which was achieved after more than two decades of stakeholders’ painstaking efforts, remains the primary legislation for the oil and gas industry and NEITI’s relentless commitment to the enactment of the PIA is well documented.
“We want to state that the cardinal objectives of transparency, efficiency, and accountability, which informed NEITI’s advocacy for that legislation, are being advanced by the presidential directive. We therefore call on Mr. President, the National Assembly, and other stakeholders to facilitate the speedy amendment of relevant sections of the Petroleum Industry Act, 2021, to bring the principal legislation up to date with the new reforms and current realities”. Hon. Adar noted.
He reiterated the Agency’s commitment to work closely with all stakeholders, the anti-corruption community, development partners to consolidate the gains and deepen ongoing reforms noting that “NEITI’s objectives and expectations will continue to be based on our institutional mandate and support for the transparent, accountable, and efficient management of Nigeria’s mineral resources for the benefit of Nigerians represented by the federating units.
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