Chief Uche Nwosu, a leader of the All Progressives Congress, praised President Bola Tinubu on Thursday for signing an executive order mandating that profits from the Nigerian National Petroleum Company Limited be transferred straight into the Federation Account prior to any money being returned to the national oil company. Former Imo State Governor Rochas Okorocha's chief of staff, Nwosu, called the decision a historic move toward openness and budgetary restraint in the handling of Nigeria's oil resources.
He called the decision "a bold and necessary fiscal reform that will deepen transparency and strengthen accountability in Nigeria's oil and gas sector," according to a statement made available to reporters in Abuja.
"It is a great innovation," he remarked. Nigerians have long called for more transparency in the handling of petroleum profits. The President has established a framework that permits appropriate inspection and institutional oversight by guaranteeing that NNPC earnings are deposited into the Federation Account initially.
Nigerians would be able to know just how much the nation makes from its oil resources thanks to this move. It upholds international best practices in public financial management and strengthens public confidence.
He claims that President Tinubu's conduct demonstrates bravery and reform-focused leadership.
"The President's bravery in making this choice demonstrates his dedication to changing the way things are done.
"It shows a strong commitment to bolstering our institutions and encouraging fiscal restraint," Nwosu stated.
The Executive Order is a component of a larger reform package intended to protect the Federation's oil and gas earnings.
As part of the broad directive, the President also suspended NNPC's ability to collect management and frontier exploration fees on Wednesday.
Uloma Amadi, the Assistant Director of Information and Public Relations at the Federal Ministry of Finance, said in a statement that the order effectively prevents deductions at the source by requiring the direct remittance of taxes, royalties, and profit oil under Production Sharing Contracts to the relevant fiscal authorities.
The ministry claims that the action is intended to close income leaks that have undermined inflows into the Federation Account over time and realign oil and gas revenue flows with constitutional obligations.
Nwosu emphasized that the directive's successful execution would improve revenue forecasts, better intergovernmental fiscal relations between the federal, state, and local governments, and improve macroeconomic planning.
"This is admirable. I urge Mr. President to keep moving forward with this course of openness and institutional development. Such firm efforts will be very beneficial to Nigeria, he continued.