Abuja — The Nigeria Extractive Industries Transparency Initiative (NEITI) has said President Bola Tinubu's recent issuance of Executive Order 9, mandating direct remittances of all revenues accruable to the government from oil and gas, was in line with its own long-held position.
The executive order issued by Tinubu on February 13, 2026, is aimed at safeguarding and enhancing oil and gas revenues for the federation and seeks to curb wasteful expenditures and reduce leakages.
According to the government, this will be done by requiring all operators to remit royalty oil, tax oil, profit oil, profit gas and all government entitlements directly to the federation account, the statement in Abuja signed by NEITI spokesperson, Obiageli Onuorah said.
Executive Secretary of NEITI, Musa Adar, described the development as "a bold step in the on-going fiscal reforms to improve financial transparency, strengthen accountability systems and mobilise resources for the much-needed development for the benefit of the citizens."
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Adar observed that the presidential directive is consistent with both the text and intention of Section 162 of Nigeria's constitution.
He explained that for the past 20 years since NEITI began exercising oversight responsibilities, as mandated by law, the agency has consistently recommended that all revenues accruable to the government are paid into the Federation Account in accordance with the provisions of the constitution, and that the remitted revenues are managed transparently for the benefit of Nigerians.
The executive secretary highlighted that in a special report published by NEITI in 2017 titled: "Unremitted Funds, Economic Recovery and Oil Sector Reform", NEITI found that more than $20 billion of remittances due to the Federation were yet to be remitted to the government.
NEITI said it found that this non-remittance was a significant contributor to the government's fiscal challenges. These revelations, it emphasised, led to the government's high-level engagement, by both the executive and legislature, with NEITI to explore the recovery of these funds and to consider necessary reforms to end the practice.
Adar affirmed that the presidential directive is therefore seen as the actualisation of a major milestone of EITI implementation in Nigeria.
"NEITI recognises that the Petroleum Industry Act (PIA) which was achieved after more than two decades of stakeholders' painstaking efforts, remains the primary legislation for the oil and gas industry and NEITI's relentless commitment to the enactment of the PIA is well documented,"Adar noted.
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