President Bola Tinubu has directed a comprehensive retrospective audit of key petroleum revenue streams while enforcing immediate direct remittance of all oil and gas funds into the Federation Account, ending previous off-budget deductions.
The directive, implemented via Executive Order, was conveyed by the Minister of State for Finance and FAAC Chairman, Dr. Doris Uzoka-Anite, to agencies including NNPC Limited, NUPRC, and NMDPRA.
All revenues, including profit oil, profit gas, royalty oil, tax oil, and gas flare penalties must now flow directly into a Sub-Federation Account managed by the Accountant-General's Office, with no deductions or retentions permitted.
This enforces Section 162 of the Constitution, requiring Federation revenues to accrue fully without unauthorized subtractions.
The order suspends prior PIA 2021 allowances such as:
30% allocation to the Frontier Exploration Fund (FEF),
NNPC Limited's 30% management fee on profit oil and gas,
Gas flare penalties directed to the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
The retrospective audit will examine these elements since their introduction:
Collections, expenditures, commitments, balances, and investments in the Frontier Exploration Fund,
Gas flare penalties collected, transfers, utilization, and procurement compliance for the MDGIF,
NNPC's 30% management fee deductions, usage, and any outstanding balances.
Affected parties, including NNPC, NUPRC, NMDPRA, RMAFC, Nigeria Revenue Service, oil contractors, and operators must provide complete financial records and grant audit access.
Any identified shortfalls require immediate restitution to the Federation Account.Weekly remittance reports are now required to the Minister's office, with violations treated as breaches of the executive order and constitutional fiscal rules.
These reforms seek to boost transparency, eliminate revenue leakages, remove duplicative structures, and restore full constitutional entitlements to federal, state, and local governments affected since 2021.
Experts praise the move for promoting fiscal discipline and increasing FAAC inflows, though some stakeholders express concerns.
The government is exploring phased distribution of recovered funds to maintain macroeconomic stability and avoid liquidity shocks.
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