By Muhammad Mamman
Nigeria’s apex bank has endorsed President Bola Ahmed Tinubu’s executive directive mandating the direct remittance of oil revenues to the Central Bank of Nigeria, signalling a significant shift in the country’s fiscal management framework.
The Central Bank of Nigeria (CBN) said it supports the executive order issued by Bola Ahmed Tinubu, which requires oil proceeds to be paid directly into the federation account, bypassing intermediary arrangements.
The move is expected to enhance transparency, strengthen liquidity management and stabilise Nigeria’s foreign exchange reserves amid ongoing economic reforms.
In a statement, the CBN described the policy as a step towards improving accountability in the management of oil earnings, which account for the bulk of Nigeria’s foreign exchange inflows. The bank added that direct remittance would help streamline revenue flows and reduce leakages within the system.
The directive affects the Nigerian National Petroleum Company Limited (NNPC), which has traditionally handled crude oil sales and remittances to the federation account. Under the new framework, proceeds from crude sales are to be transferred directly in line with federal financial regulations.
Economic analysts say the policy could bolster investor confidence if implemented transparently and consistently, particularly as Nigeria grapples with exchange rate volatility and revenue shortfalls.
The Tinubu administration has introduced a series of economic reforms since taking office, including fuel subsidy removal and foreign exchange market adjustments, aimed at restoring macroeconomic stability and attracting foreign investment.
While supporters argue the executive order will tighten fiscal discipline, critics have urged the government to ensure clear operational guidelines and oversight mechanisms to prevent bureaucratic bottlenecks.
Oil remains Nigeria’s main revenue earner, making any structural adjustment to its management a matter of national economic significance.
