Billions in oil revenues will now bypass the state oil company. They will flow directly to Nigeria’s three tiers of government. This massive financial shift follows the recent signing of Executive Order 9 of 2026.
Consequently, financial experts are aggressively backing the move. The Capital Market Academics of Nigeria (CMAN) has strongly praised these sweeping Tinubu oil sector reforms.
Prof Uche Uwaleke, President of CMAN, called the policy a “bold and historic” decision. He noted it corrects severe fiscal imbalances created by the Petroleum Industry Act (PIA) 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.
How Tinubu Oil Sector Reforms Dismantle the Old Revenue Structure
Previously, the Federation Account received only 40 per cent of proceeds from Production Sharing Contracts. The Nigerian National Petroleum Company Limited (NNPCL) controversially retained the remaining 60 per cent.
This massive NNPCL retention was divided into two distinct parts:
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30 per cent allocated to a Frontier Exploration Fund.
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30 per cent held as a management fee.
However, President Bola Tinubu officially signed Executive Order 9 on February 13, 2026. This directive reclaims that 60 per cent directly for the Federal, State, and Local governments.
Uwaleke argued the previous structure severely undermined the 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.
Demanding Extra Safeguards for Tinubu Oil Sector Reforms
Meanwhile, CMAN emphasized that successful implementation requires strong institutional safeguards. The group specifically demanded the inclusion of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Chairman.
They want this official placed on the committee overseeing the Executive Order’s execution.
“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 (FAAC) and for fiscal justice in Nigeria.”
Furthermore, the group urged the administration to extend these reforms to Joint Venture (JV) assets. They argued returning JV revenues to the Federation Account would maximize national income.
Ultimately, this expected surge in revenue should significantly improve service delivery across all government tiers.
“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.
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