Reporting by The Nation indicates that the Federal Government has officially commenced the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC) in line with Executive Order 9. This move effectively bypasses previous bureaucratic bottlenecks that allowed the national oil company to withhold significant portions of revenue for “operating costs” before distribution.
This policy shift is designed to ensure that state and local governments receive their fair share of the country’s oil wealth in a more timely and transparent manner. The Presidency has described the order as a “test of fiscal transparency,” aimed at curbing the opaque accounting practices that have historically plagued the petroleum sector.
Channels TV verified the implementation, reporting that “the first batch of direct payments hit the federation account this morning, signaling a new era of accountability.” The Guardian also highlighted the development, quoting a government spokesperson: “We are closing the loophole where billions were lost to ‘unreconciled’ expenses at the source.”
Echotitbits take: By ensuring direct flow to the FAAC, the Federal Government is placing more financial power (and responsibility) in the hands of Governors. The next thing to watch is how states utilize this increased liquidity and whether it translates to grassroots development.
Source: The Nation – https://punchng.com/executive-order-fg-begins-direct-remittance-of-oil-revenues-to-faac/, March 3, 2026
Photo credit: The Nation
