Capital market group commends Tinubu’s oil sector reforms

Capital market group commends Tinubu’s oil sector reforms

The Capital Market Academics of Nigeria has thrown its weight behind President Bola Tinubu following his recent signing of Executive Order 9 of 2026, which mandates the direct remittance of 60 per cent of oil and gas profits back to the Federation Account.

In a statement released on Thursday, the President of CMAN, Prof Uche Uwaleke, described the move as a “bold and historic” decision that corrects a long-standing fiscal imbalance created by the Petroleum Industry Act of 2021.

“This marks one of the most courageous reforms of his administration and a decisive step toward strengthening fiscal transparency and equity in revenue distribution,” Uwaleke stated.

Since the implementation of the PIA in 2021, the Federation Account, shared by the federal, state, and local governments, received only 40 per cent of proceeds from Production Sharing Contracts.

The remaining 60 per cent was retained by the Nigerian National Petroleum Company Limited, split between a 30 per cent Frontier Exploration Fund and a 30 per cent management fee.

Uwaleke noted that this structure undermined the principle of collective ownership of national resources.

“By correcting this anomaly, the President has ensured that all tiers of government benefit equitably from the nation’s oil and gas wealth. NNPCL, as a limited liability company, must operate independently on its own revenues rather than relying on public funds,” he added.

While praising the reform, CMAN emphasised the need for institutional safeguards to ensure the new policy achieves its intended goals. Specifically, the institute called for the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission to be included in the committee overseeing the implementation of the Executive Order.

“CMAN underscores the importance of including the RMAFC Chairman to ensure transparency and accountability. This development is a victory for the Federation Accounts Allocation Committee and for fiscal justice in Nigeria,” it stated.

The group also urged the administration to extend these reforms to joint venture assets, arguing they should also be returned to the Federation Account to maximise national revenue.

According to the statement, the anticipated surge in revenue will enhance the capacity of all government tiers to deliver essential services and stimulate the capital markets.

“We remain committed to advocating for policies that strengthen transparency and fairness. We call on all stakeholders to support the President’s reform agenda for the benefit of all Nigerians,” Uwaleke concluded.

The reform reflects a major shift from the Petroleum Industry Act of 2021. Under the previous arrangement, the Federation received only 40 per cent of certain oil proceeds, while 60 per cent was retained by NNPCL (30 per cent for a management fee and 30 per cent for the Frontier Exploration Fund).

The new Executive Order effectively “reclaims” this 60 per cent for the three tiers of government (federal, state, and local).

The recent move by Tinubu via Executive Order 9 of 2026, signed on 13 February 2026, represents a seismic shift in Nigeria’s oil and gas fiscal policies.

Tinubu