The Capital Market Academics of Nigeria (CMAN) has commended President Bola Ahmed Tinubu for approving the restoration of 60 per cent of proceeds from profit oil and gas under Production Sharing Contracts (PSCs) to the Federation Account.
CMAN described the decision as one of the most courageous reforms of the administration and a major step toward promoting fiscal transparency and fairness in revenue distribution.
Since the implementation of the Petroleum Industry Act (PIA) in 2021, the Federation Account — shared by the Federal, State and Local Governments — reportedly received only 40 per cent of PSC profit oil and gas proceeds.
The remaining 60 per cent was retained by the Nigerian National Petroleum Company Limited (NNPCL), including 30 per cent allocated to the Frontier Exploration Fund and another 30 per cent as management fee under its expenditure oversight.
CMAN argued that the arrangement undermined the principle of collective ownership of national resources. It said the President’s action corrects the imbalance and ensures that all tiers of government benefit equitably from Nigeria’s oil and gas wealth.
The group further noted that as a limited liability company, NNPCL is expected to operate independently on its own revenues rather than rely on public funds. It described the reform as a bold move in that direction.
However, CMAN urged the Federal Government to extend the reform to Joint Venture (JV) assets by returning them to the Federation Account to further strengthen fiscal discipline.
The association said the development represents a victory for the Federation Accounts Allocation Committee (FAAC) and for fiscal justice in Nigeria. It added that the move would significantly increase revenues available to all tiers of government, thereby enhancing service delivery, stimulating economic activity and supporting growth in the capital market.
CMAN reaffirmed its support for the President’s reform agenda and called on stakeholders to back policies that promote transparency, accountability and fairness in the management of Nigeria’s resources.
It also stressed the need to include the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in the committee overseeing the implementation of the Executive Order to ensure transparency and accountability.
