The Central Bank of Nigeria (CBN) has thrown its weight behind President Bola Ahmed Tinubu’s executive order directing that oil and gas revenues be paid straight into the federation account.
CBN Governor Olayemi Cardoso said the policy is expected to strengthen government finances and boost Nigeria’s foreign reserves. He spoke on Tuesday after the bank’s 304th Monetary Policy Committee (MPC) meeting.

According to Cardoso, members of the MPC welcomed the executive order, noting that it could improve fiscal inflows by ensuring that oil earnings are remitted directly to the federal account. He added that the move could also help increase reserve accumulation over time.

President Tinubu signed the order last week, a decision that has sparked debate across Nigeria’s oil and gas sector. The directive alters how oil revenues are handled and removes certain income streams previously managed by Nigerian National Petroleum Company Limited.

While some industry players and analysts have praised the order as a step toward greater transparency and stronger public finances, others have raised concerns. Critics argue that the policy may conflict with provisions of the Petroleum Industry Act and should be backed by legislation.

Amid the mixed reactions, energy experts and petroleum retailers have advised the president to seek the support of the National Assembly. They believe legislative approval would provide a solid legal foundation for the executive order and reduce uncertainty within the sector.