The Central Bank of Nigeria (CBN) has expressed strong support for President Bola Tinubu's Executive Order 09, which mandates the direct remittance of oil and gas revenues to the Federation Account.
CBN Governor Olayemi Cardoso announced the endorsement during a briefing following the 304th Monetary Policy Committee (MPC) meeting on Tuesday, February 24, 2026.
He stated that MPC members welcomed the order and recognized its potential benefits.“Members welcomed the issue of Presidential Executive Order 09, which redirects oil and gas revenue into the federation account,” Cardoso said.
“The committee acknowledges the potential impact of the order on improving fiscal revenue and accretion to reserves.”
The executive order, signed by President Tinubu last week (effective from February 13, 2026), directs that proceeds from royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
It eliminates certain deductions previously retained by the Nigerian National Petroleum Company Limited (NNPCL), such as management fees and contributions to the Frontier Exploration Fund, and suspends gas flare penalty payments into designated infrastructure funds.
The measure aims to enhance transparency, curb leakages, eliminate duplicative structures, and boost funds available to the federal, state, and local governments.
Estimates suggest it could significantly increase allocations, with projections indicating additional revenues in the trillions of naira based on recent remittance patterns.
While the CBN has backed the order for its positive fiscal implications, the directive has drawn mixed reactions in the oil and gas sector.
Some stakeholders praise it as a step toward greater accountability, while others argue it may conflict with provisions of the Petroleum Industry Act (PIA) and have called for National Assembly approval to provide stronger legislative backing.
The Presidency has defended the order as operationalizing constitutional provisions under Section 162 of the 1999 Constitution (as amended), which requires all Federation revenues to flow directly into the Federation Account.
A forensic audit of NNPC proceeds is also ongoing under the Federation Account Allocation Committee (FAAC) mandate to support transparency efforts.
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