The Chairman of the Forum of State Commissioners of Finance, Akintunde Oyebode, has said that President Bola Tinubu’s Executive Order 9 on the direct remittance of oil and gas revenues is expected to contribute only about N1.5 trillion to the Federation Account.
Speaking on Arise News on Tuesday, Oyebode, who also serves as Ekiti State Commissioner for Finance, said the directive’s main significance lies in enforcing constitutional control over federation revenues and addressing leakages linked to the Petroleum Industry Act framework.
He explained that proceeds from management fees, frontier exploration charges, and gas-flaring penalties were estimated to add roughly N1.5 trillion to the Federation Account. However, he noted that the increase is modest compared with annual inflows of around N30 trillion, describing the impact as single-digit growth rather than a major revenue windfall.
Executive Order 9, signed in February 2026, mandates that oil and gas revenues due to the federation be paid directly into the Federation Account, limiting deductions by agencies and ensuring statutory inflows are remitted before any spending or appropriation.
Oyebode rejected suggestions that states would automatically receive more funds under the arrangement, stressing that the goal is constitutional compliance and safeguarding public revenues rather than increasing allocations to states. He also highlighted broader concerns about declining joint venture inflows since the implementation of the Petroleum Industry Act, noting that contributions had reportedly fallen from about $12 billion before the law to roughly $2 billion afterwards.
Addressing fears that the directive could disrupt operations at NNPC Limited, Oyebode said the sums involved are small relative to the company’s scale, citing the firm’s audited profits of N4.5 trillion in 2024, and suggested the changes would not materially affect its finances.
On the broader investment climate, he noted that the oil and gas sector had recorded about $10 billion in new investments, pointing to major projects and final investment decisions as evidence of improving momentum.
Oyebode also dismissed claims that states were being “given” money by the Federal Government, emphasising that Federation Account revenues belong to the federation and are shared according to constitutional provisions. He said domestic debt levels in many states have declined by 15 to 20 per cent over the past two years, while increases in foreign debt largely reflect exchange-rate movements.
He further denied that states routinely borrow for recurrent spending, explaining that loans are typically tied to structured plans and often fund infrastructure projects in areas such as water supply, agriculture, and environmental programmes.
Highlighting transparency reforms under the World Bank-backed State Fiscal Transparency, Accountability and Sustainability programme, Oyebode noted that many states now publish budgets, procurement data, quarterly implementation reports, and audited financial statements, and encouraged civil society to scrutinise government spending.