RMAFC Says Tinubu’s New Order Will Stop Oil Revenue Leakages
By Patience Ikpeme
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has expressed its support for President Bola Ahmed Tinubu following his signing of a new Executive Order that changes how oil and gas money is collected.
The Commission stated that this new directive will make sure money from Nigeria’s natural resources goes straight into the Federation Account as the law requires.
The Chairman of the Commission, M. B. Shehu, described the President’s action as a brave and important move. He noted that the order would bring back honesty in the way money is handled, stop revenue from disappearing into the wrong hands, and provide more funds for the federal, state, and local governments to share.
According to the Commission, the Nigerian Constitution is clear that all oil, gas, and minerals belong to the whole country and should benefit all Nigerians. However, before this new order, certain rules in the Petroleum Industry Act (PIA) allowed some of this money to be taken out for “management fees” and other charges before the rest reached the government’s main account. These deductions meant there was less money left for the three tiers of government to spend on the people.
“RMAFC wishes to state that the Commission has consistently advocated the review of statutory and regulatory provisions that create opportunities for revenue leakage, erosion, or retention outside the Federation Account,” the Chairman said. He added that the President’s new order has now solved these long-standing problems.
The Commission believes this change has come at the right time because Nigeria needs more money to fix security, build roads, improve schools, and provide better healthcare. By stopping these extra deductions and secret spending, the government will have a better idea of how much money is coming in and how to plan for the nation’s needs.
“By freeing revenues previously subjected to layered deductions and fragmented oversight, the Executive Order enhances transparency, improves cash flow predictability, strengthens fiscal federalism, and restores the constitutional revenue rights of the Federal, State, and Local Governments,” the Chairman noted.
He also explained that this new rule makes it easier for the Commission to do its job of watching over how money enters and leaves the Federation Account. He stated that the new system closes the holes where money used to leak out and ensures that everything is done openly.
“With this Executive Order, the constitutional architecture of revenue remittance is strengthened. It closes structural leakages, eliminates duplicative deductions, and ensures that revenues due to the Federation are remitted transparently. This directly supports the Commission’s oversight and monitoring responsibilities,” he stated.
RMAFC concluded by saying it fully supports the government’s efforts to manage public money better. The Commission promised to work with other government offices to make sure the President’s order is followed strictly so that the wealth from Nigeria’s oil and gas truly reaches every citizen.
