The Capital Market Academics of Nigeria has expressed strong support for President Bola Tinubu following his signing of Executive Order 9 of 2026, which directs that 60 per cent of oil and gas profits be remitted directly to the Federation Account.

In a statement on Thursday, CMAN President Prof. Uche Uwaleke called the move “bold and historic,” noting that it addresses a longstanding fiscal imbalance stemming from the Petroleum Industry Act of 2021.

“This marks one of the most courageous reforms of his administration and a decisive step toward strengthening fiscal transparency and equity in revenue distribution,” Uwaleke stated.

Since the implementation of the PIA in 2021, only 40 per cent of proceeds from Production Sharing Contracts have been remitted to the Federation Account, which is shared among the federal, state, and local governments.

The remaining 60 per cent was retained by the Nigerian National Petroleum Company Limited, divided equally between a 30 per cent Frontier Exploration Fund and a 30 per cent management fee.

Prof. Uwaleke noted that this arrangement undermined the principle of collective ownership of national resources.

“By correcting this anomaly, the President has ensured that all tiers of government benefit equitably from the nation’s oil and gas wealth. NNPCL, as a limited liability company, must operate independently on its own revenues rather than relying on public funds,” he added.

However, CMAN stressed the importance of institutional safeguards to ensure the new policy achieves its objectives.

The body specifically recommended that the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission be included in the committee overseeing the implementation of the Executive Order.

“CMAN underscores the importance of including the RMAFC Chairman to ensure transparency and accountability. This development is a victory for the Federation Accounts Allocation Committee and for fiscal justice in Nigeria,” it stated.

The group also urged the administration to extend these reforms to joint venture assets, arguing that their proceeds should also flow into the Federation Account to maximise national revenue.

The statement added that the expected increase in revenue would strengthen the capacity of all tiers of government to provide essential services and stimulate the capital markets.

“We remain committed to advocating for policies that strengthen transparency and fairness. We call on all stakeholders to support the President’s reform agenda for the benefit of all Nigerians,” Uwaleke noted.

The reform marks a significant departure from the Petroleum Industry Act of 2021. Under the previous framework, the Federation received only 40 per cent of certain oil revenues, while the Nigerian National Petroleum Company Limited (NNPCL) retained 60 per cent—split equally between a 30 per cent management fee and a 30 per cent Frontier Exploration Fund.

The new Executive Order effectively “reclaims” this 60 per cent for the three tiers of government—federal, state, and local.