Tinubu Oil Revenue Order Praised by Arewa Think Tank, Calls for RMAFC Inclusion

The Tinubu oil revenue order has sparked widespread reactions across Nigeria’s political and economic landscape, with stakeholders in the oil and gas sector describing the directive as a significant step toward improving transparency and accountability in the management of petroleum revenues. The Arewa Think Tank has publicly praised the bold initiative introduced by President Bolа Ahmed Tinubu, while also urging the federal government to include the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) in the implementation framework of the order.

The executive directive, popularly referred to as the Tinubu oil revenue order, mandates that all revenues generated from Nigeria’s oil and gas operations be remitted directly into the Federation Account. This decision is aimed at eliminating leakages, improving government revenue collection, and ensuring that funds meant for the federal, state, and local governments are fully accounted for without unnecessary deductions.

Understanding the Tinubu Oil Revenue Order

The Tinubu oil revenue order was recently signed as part of the federal government’s broader strategy to reform Nigeria’s petroleum revenue system. According to officials within the presidency, the directive was issued to correct long-standing challenges in the management of oil revenues, particularly those related to multiple deductions and administrative bottlenecks that have reduced the amount of funds remitted into the Federation Account over the years.

Under Nigeria’s constitutional framework, revenues derived from oil and gas resources belong to the Federation and must be shared among the federal government, state governments, and local government councils. However, several reports have indicated that significant amounts of revenue were being retained through operational charges, deductions, and institutional structures that prevented the full remittance of funds into the national treasury.

The new Tinubu oil revenue order seeks to address these issues by ensuring that revenues generated from petroleum production are transferred directly to the Federation Account before any other deductions or allocations are made.

Arewa Think Tank Commends the Tinubu Oil Revenue Order

Reacting to the policy announcement, the Arewa Think Tank issued a statement through its convener, Muhammad Yakubu, describing the Tinubu oil revenue order as a courageous and patriotic decision that could transform Nigeria’s revenue management system.

According to Yakubu, the directive demonstrates the administration’s commitment to transparency, accountability, and fiscal discipline in the management of the country’s natural resources.

He noted that the Tinubu oil revenue order is particularly important at a time when Nigeria is seeking new strategies to boost government income, reduce dependence on borrowing, and improve the financial stability of the country.

Yakubu explained that ensuring direct remittance of oil revenues into the Federation Account would significantly strengthen the country’s fiscal framework and improve the distribution of resources among different levels of government.

Call for RMAFC Inclusion in Implementation Committee

While praising the Tinubu oil revenue order, the Arewa Think Tank also raised concerns about the composition of the implementation committee responsible for executing the policy. According to the group, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) was not listed among the institutions responsible for overseeing the execution of the order.

Yakubu described this omission as a possible oversight and urged the President to consider including the commission in the implementation process.

The RMAFC is a constitutionally established body responsible for monitoring revenue accruals into the Federation Account and ensuring that funds are distributed appropriately among the three tiers of government.

Because of its statutory responsibilities, the Arewa Think Tank believes that the commission’s participation in the implementation of the Tinubu oil revenue order would improve institutional credibility and enhance transparency in the management of oil revenues.

Why RMAFC Participation Matters

Experts believe that the inclusion of RMAFC in the implementation of the Tinubu oil revenue order would strengthen oversight mechanisms within Nigeria’s revenue management framework. The commission’s mandate includes monitoring revenue inflows, reviewing fiscal allocation formulas, and ensuring that funds are distributed according to constitutional provisions.

With these responsibilities, the commission is uniquely positioned to provide technical expertise and institutional oversight that can help ensure the success of the new oil revenue remittance policy.

According to the Arewa Think Tank, the involvement of RMAFC would ensure that the implementation of the Tinubu oil revenue order aligns with constitutional principles and promotes accountability across all government institutions involved in the petroleum sector.

Impact on Nigeria’s Oil and Gas Sector

The oil and gas industry remains Nigeria’s most important source of government revenue and foreign exchange earnings. As a result, reforms aimed at improving transparency and efficiency in the sector are often viewed as critical to the country’s economic stability.

The Tinubu oil revenue order is expected to have significant implications for the sector by ensuring that all revenues generated from petroleum operations are accurately recorded and remitted into the Federation Account.

Analysts believe that the reform could help Nigeria recover billions of naira that may have previously been lost through administrative deductions, operational charges, or inefficient revenue management practices.

By strengthening transparency and accountability in the oil revenue system, the Tinubu oil revenue order could also improve investor confidence in Nigeria’s petroleum industry.

Concerns Over Revenue Leakages

For years, experts and policymakers have raised concerns about revenue leakages in Nigeria’s oil and gas sector. Reports have suggested that complex financial structures and multiple deductions have sometimes reduced the amount of funds that ultimately reach the Federation Account.

The introduction of the Tinubu oil revenue order is seen as a direct response to these challenges, as it requires that revenues be remitted directly before any operational expenses or deductions are made.

Supporters of the policy argue that this approach will significantly reduce opportunities for financial mismanagement and ensure that public funds are properly accounted for.

Strengthening Fiscal Discipline

Another major objective of the Tinubu oil revenue order is to strengthen fiscal discipline within Nigeria’s public finance system. By ensuring that oil revenues are properly recorded and remitted, the government hopes to create a more reliable revenue base that can support national development initiatives.

This reform is also expected to improve the financial stability of state governments and local councils, many of which rely heavily on allocations from the Federation Account to fund their operations.

By increasing the transparency of revenue flows, the Tinubu oil revenue order could help ensure that public funds are used more efficiently and responsibly across all levels of government.

Support for Tinubu’s Reform Agenda

The Arewa Think Tank reiterated its support for the broader reform agenda of President Tinubu’s administration, emphasizing that policies aimed at improving transparency in the oil sector are essential for Nigeria’s economic growth.

According to the group, the success of the Tinubu oil revenue order will depend on strong institutional collaboration among government agencies responsible for revenue management, regulatory oversight, and fiscal policy.

Yakubu stressed that bringing together all relevant constitutional bodies, including RMAFC, would help ensure that the objectives of the policy are fully achieved.

Looking Ahead

As Nigeria continues to implement reforms in the oil and gas sector, the Tinubu oil revenue order is likely to remain a key topic of discussion among policymakers, industry stakeholders, and economic analysts.

If successfully implemented, the directive could mark a turning point in the management of Nigeria’s petroleum revenues, ensuring that the country derives maximum benefit from its vast natural resources.

For many observers, the policy represents a crucial step toward restoring public confidence in the governance of Nigeria’s oil industry and strengthening the financial foundation of the Federation.

With continued dialogue among stakeholders and the possible inclusion of institutions like RMAFC, the Tinubu oil revenue order could become one of the most significant fiscal reforms in Nigeria’s petroleum sector in recent years.

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