The Capital Market Academics of Nigeria (CMAN) has commended President Bola Ahmed Tinubu for issuing an Executive Order directing the restoration of 60 per cent of proceeds from profit oil and gas under Production Sharing Contracts (PSCs) to the Federation Account.

In a press statement signed by its President, Prof. Uche Uwaleke, CMAN described the move as one of the most courageous reforms of the current administration and a decisive step toward strengthening fiscal transparency and equity in revenue distribution.

The group explained that since the implementation of the Petroleum Industry Act (PIA) in 2021, only 40 per cent of PSC proceeds had accrued to the Federation Account shared by the Federal, State, and Local Governments, while 60 per cent was retained by the Nigerian National Petroleum Company Limited (NNPCL). According to CMAN, the retained portion comprised 30 per cent allocated to the Frontier Exploration Fund under NNPCL’s expenditure oversight and another 30 per cent as a management fee.

CMAN argued that the arrangement undermined the principle of collective ownership of national resources, stressing that the President’s decision corrects the imbalance and ensures equitable benefit to all tiers of government from Nigeria’s oil and gas wealth.

The academics further noted that as a limited liability company, NNPCL is expected to operate independently on its own revenues rather than rely on public funds. They described the Executive Order as a bold step in that direction but urged that the reform process be extended to Joint Venture assets, which they said should also be returned to the Federation Account.

CMAN said the development represents a victory for the Federation Accounts Allocation Committee and for fiscal justice in Nigeria, adding that increased revenues to the Federation Account would enhance the capacity of governments at all levels to deliver public services, stimulate economic activities, and deepen the capital market.

The group also called for the inclusion of the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission in the committee overseeing the implementation of the Executive Order to guarantee transparency and accountability.

CMAN reaffirmed its support for the reform agenda and pledged continued advocacy for policies that promote transparency, accountability, and fairness in the management of Nigeria’s natural resources.