CMAN Hails Tinubu’s Oil & Gas Revenue Reform as Historic Win for Fiscal Equity

Prof. Uche Uwaleke FCMA, President of CMAN

The Capital Market Academics of Nigeria (CMAN) has lauded President Bola Ahmed Tinubu’s bold decision to ensure that 60% of proceeds from profit oil and gas under Production Sharing Contracts (PSCs) are remitted directly to the Federation Account. The move, described by CMAN as one of the most significant reforms of the current administration, is expected to enhance transparency, fairness, and fiscal accountability across all tiers of government.
Prof. Uche Uwaleke FCMA, President of CMAN, explained that since the Petroleum Industry Act (PIA) came into effect in 2021, only 40% of profit oil and gas revenues reached the Federation Account. The Nigerian National Petroleum Company Limited (NNPCL) had retained the remaining 60%—divided between the Frontier Exploration Fund (30%) and management fees (30%)—creating an imbalance that undermined the principle of collective ownership of national resources.
“This Executive Order corrects a long-standing inequity in Nigeria’s oil revenue structure, ensuring that the Federal, State, and Local Governments all receive their rightful share of the nation’s oil wealth,” Prof. Uwaleke said.
CMAN emphasized that the reform strengthens fiscal justice and expands the capacity of governments to fund essential services, drive economic activity, and support the growth of capital markets. The organization also noted that, as a limited liability company, NNPCL should operate primarily on its own revenues, rather than relying on public funds—a principle reinforced by the President’s directive.
However, CMAN highlighted the need for ongoing reforms, particularly regarding Joint Venture (JV) assets, which should also be returned to the Federation Account to promote full transparency and equitable resource management.
The organization further recommended that the Chairman of the Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) be included in the oversight committee charged with implementing the Executive Order. CMAN believes this inclusion will ensure accountability and proper monitoring of funds remitted to the Federation Account.
Concluding, CMAN reaffirmed its support for President Tinubu’s reform agenda, urging all stakeholders to collaborate in promoting transparent and equitable management of Nigeria’s natural resources. “This is a pivotal moment for the nation. Properly managed, these reforms will not only strengthen governance but also drive sustainable economic growth,” Prof. Uwaleke stated.

The Capital Market Academics of Nigeria (CMAN) commends President Bola Ahmed Tinubu’s Executive Order directing 60% of oil and gas PSC revenues to the Federation Account, describing it as a historic reform for fiscal transparency, equity, and accountability.

CMAN hails President Tinubu’s landmark Executive Order on oil and gas revenues, calling it a decisive step toward fiscal fairness, transparency, and stronger governance in Nigeria.