Minister of State for Finance, Dr. Doris Uzoka-Anite, has commended President Bola Ahmed Tinubu’s executive order on oil earnings remittance, saying it will boost FAAC revenue and promote fiscal discipline.

Dr Uzoka-Anite disclosed this in Abuja while addressing members of the Federation Account Allocation Committee (FAAC), urging States, Ministries, Departments and Agencies (MDAs) of the Federal Government to prioritise capital expenditure over recurrent expenditure.

The Minister commended President Bola Ahmed Tinubu’s executive order mandating direct remittance of certain oil sector revenues to the Federation Account, stating that the presidential executive order would safeguard oil and gas revenues.

She explained that the order would provide regulatory clarity and significantly strengthen revenues accruing to the Federation Account The Minister described the development as a structural fiscal correction aimed at restoring constitutional discipline to petroleum revenue management and enhancing distributable income across the three tiers of government.

She said that the revenue outlook was improving due to ongoing structural reforms introduced by the Federal Government.

The Minister explained further that the newly implemented tax reform measures are broadening the tax base, improving compliance, and enhancing administrative efficiency.

Also, the executive order signed by the President on February 13 is reinforcing revenue discipline in the oil and gas sector and reducing leakages,* Uzoka-Anite said.

She stated that the order suspends the 30 per cent allocation to the Frontier Exploration Fund (FEF), suspends the 30 per cent management fee on oil and gas profit payable to NNPC Limited.

It also directed that gas flare penalties be paid into the federation account, and mandated full remittance of petroleum revenues without unconstitutional deductions.