Abuja, Feb. 21, 2026 – The Minister of State for Finance and Chairman of the Federation Account Allocation Committee (FAAC), , says the Tinubu executive order mandating direct remittance of certain oil revenues will significantly boost inflows into the federation account and enhance fiscal discipline.
Commending President for signing the order on February 13, Uzoka-Anite told FAAC members in Abuja on Friday that the directive safeguards oil and gas revenues, provides regulatory clarity and strengthens distributable income across federal, state and local governments.
She described the policy as a structural fiscal correction that restores constitutional discipline to petroleum revenue management. The order suspends the 30 per cent allocation to the Frontier Exploration Fund and halts the 30 per cent management fee on oil and gas profits payable to NNPC Limited. It also directs that gas flare penalties be paid into the federation account and mandates full remittance of petroleum revenues without unconstitutional deductions.
According to the minister, the reform shifts Nigeria from a retention-based oil revenue framework to a gross remittance, federation-first model, ensuring that more oil and gas profits flow directly into the federation account. She added that a retrospective audit of the Frontier Exploration Fund, the Midstream and Downstream Gas Infrastructure Fund and NNPC management fee deductions could yield recoveries that may provide a one-off fiscal boost.
Uzoka-Anite noted that the revenue outlook is improving due to broader structural and tax reforms aimed at expanding the tax base, strengthening compliance and enhancing administrative efficiency. She, however, cautioned against the risks of sharp liquidity injections, warning that sudden distribution of large inflows could fuel inflationary pressures and complicate monetary management.
To mitigate such risks, she proposed phased disbursement of one-off recoveries, temporary warehousing of part of incremental inflows in a stabilisation buffer and closer coordination with the Central Bank of Nigeria to align fiscal injections with liquidity management tools.
She urged states and federal Ministries, Departments and Agencies to prioritise capital projects in infrastructure, agriculture and energy over recurrent spending, stressing that productive investments would expand supply capacity and help contain inflation.
Uzoka-Anite also announced plans to introduce monthly revenue transparency dashboards and production-to-remittance reconciliation reports, describing the reforms as an opportunity to deepen fiscal federalism, enhance trust among tiers of government and build a more resilient revenue framework.
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