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New oil revenue order will boost FAAC allocations – FG
The Federal Government says its newly introduced tax reform measures and the Presidential Executive Order on oil and gas revenue remittance will increase the amount of money shared by the three tiers of government and strengthen the Federation Account.
The Minister of State for Finance, Doris Uzoka-Anite, spoke in Abuja on Friday at the opening session of the February meeting of the Federation Account Allocation Committee. She told journalists that the reforms are designed to widen the tax net, improve compliance, and make revenue collection more efficient, while the presidential order will enforce discipline in the oil and gas sector and stop leakages.
“These reforms are expected to boost FAAC distributable income in a sustained manner,” she said.
Uzoka-Anite explained that the Executive Order is more than a routine directive. According to her, it is a major fiscal correction meant to restore constitutional rules in the way petroleum revenue is handled and to ensure more funds reach the Federation Account for the benefit of Nigerians.
She said the order targets long-standing problems such as off-budget deductions, retained management fees, diversion of gas flare penalties, and fragmented remittance systems. She explained that it suspends the 30 per cent allocation previously set aside for the Frontier Exploration Fund and also suspends the 30 per cent management fee on profit oil and gas payable to NNPC Limited. In addition, gas flare penalties must now be paid directly into the Federation Account, while all petroleum revenues must be remitted in full without deductions not recognised by law.
She described the reform as a shift from what she called a retention-based system to a “gross remittance, Federation-first model,” meaning revenues will now be paid in full before any other consideration.
The minister said the combined effect of the tax reforms and the order will be significant for government finances. She noted that more profit from oil and gas will flow straight into the Federation Account, gas flare penalties will become part of distributable revenue, and previously retained charges will no longer reduce what is shared. She added that this could lead to higher monthly inflows, increased allocations to federal, state, and local governments, higher derivation payments to oil-producing states, and more predictable cash flow for public spending.
She also disclosed that a review of past deductions involving certain oil funds and management fees could result in recoveries that may provide a one-time financial boost. “This reform strengthens FAAC by creating a broader tax base as well as ensuring that constitutionally due revenues are fully remitted,” she said.
Uzoka-Anite, however, warned that higher revenue must be handled carefully. She said sudden increases in funds shared across government levels could raise demand in the economy, put pressure on exchange rates, distort asset prices, and fuel inflation if not properly managed. “Our task is not only to distribute revenue. It is to safeguard macroeconomic stability,” she stated.
To prevent such risks, she said authorities are considering spreading out payments from any recovered funds instead of releasing them all at once. Part of the money, she said, could be kept temporarily in a stabilisation buffer so that excess cash does not flood the system at the same time.
She added that FAAC may also channel part of the new inflows into a reserve mechanism that can be used when revenues drop in weaker months. According to her, such buffers help governments maintain steady spending and avoid sharp swings in the economy.
Uzoka-Anite said closer coordination with the Central Bank of Nigeria will also be important so that fiscal spending and monetary policy move together. She explained that this cooperation will help manage liquidity levels and prevent the sudden expansion of the money supply that could destabilise prices.
She urged federal and state agencies to focus on productive projects rather than increasing recurrent spending. “States and MDAs should prioritise capital expenditure, invest in infrastructure, agriculture, energy, and other productive sectors, and avoid unsustainable wage or consumption spikes,” she said, noting that investments that expand production help control inflation.
The minister also announced plans for stronger transparency measures, including monthly revenue dashboards, reconciliation reports comparing production and remittance figures, and clear disclosure of additional inflows linked to the reforms and the executive order. She said transparency will promote discipline and build trust among all levels of government.
According to her, the reforms present a chance to deepen fiscal federalism, improve revenue sharing, and strengthen confidence between federal, state, and local authorities. She warned, however, that higher earnings should not be treated as permanent windfalls. Instead, she advised governments to use extra funds to reduce debt, clear outstanding obligations, build savings buffers, and invest in sectors that support long-term growth.
She explained that experience shows that when large sums enter the system suddenly, prices may rise quickly and reduce the real value of the same allocations being shared. “When too much liquidity enters the system at once, prices can rise in a way that erodes the value of the very allocations we are distributing,” she said.
Uzoka-Anite concluded that careful planning and disciplined management of increased revenue will be necessary to ensure that the benefits of the reforms translate into real economic gains for citizens rather than short-term spending pressures.
By Gloria Ikibah
Sterling Financial Holdings Company Plc has commenced an approved share capital reconstruction, consolidating every 10 existing ordinary shares into one new share as part of efforts to streamline its capital structure and strengthen its appeal to investors.
The company disclosed this in a statement on Friday, saying the exercise followed several rounds of capital raising that had expanded its equity base.
According to Sterling Financial the reconstruction was designed to improve capital-structure efficiency, support strategic growth and make the company more attractive to institutional and retail investors.
The group enters the exercise on the back of a strong first-half performance, with profit after tax rising by 20.4 per cent to N50.3 billion, compared with gross earnings of N279.6 billion.
Its total assets stood at N4.67 trillion, while shareholders’ funds increased by 27.8 per cent to N547.7 billion.
The company said the reconstruction formed part of its broader strategy to optimise its share structure as it pursues sustainable earnings growth and stronger returns.
Trading in Sterling Financial’s shares on the Nigerian Exchange Limited (NGX) was temporarily suspended on Wednesday, September 23, to facilitate the exercise.
The suspension is scheduled to run for up to 10 working days, ending Wednesday, October 7, while the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited reconcile shareholders’ holdings and update the register.
The company said the resumption of trading will be communicated after the process had been completed and confirmed by the NGX.
Sterling Financial said the revised share structure was expected to support more efficient price formation and improve the assessment of per-share performance across reporting periods.
It added that the reconstruction will also allow investors to make clearer comparisons with relevant sector peers.
Shareholders approved the exercise at the company’s Annual General Meeting on June 9, 2026, while the required regulatory no-objections were obtained.
The Federal High Court also confirmed the share reduction exercise in an order dated September 22, 2026.
Under the new structure, Sterling Financial’s issued ordinary shares will fall from 68,502,331,708 to 6,850,233,171, with each share retaining a nominal value of 50 kobo.
The company stressed that the restructuring will not alter total shareholders’ funds.
It also clarified that the exercise was neither a fresh capital raise nor a cash distribution.
For individual shareholders, every 10,000 existing shares will be converted into 1,000 reconstructed shares, with the reference price adjusted tenfold.
According to the company, the adjustment is intended to preserve the calculated value of a shareholder’s holding at the point of reconstruction, although the actual market price may rise or fall when trading resumes.
Voting and economic interests will continue in proportion to shareholders’ reconstructed holdings, while accrued dividend entitlements will remain intact.
Future dividends, whenever declared, will be calculated based on the reconstructed share base.
Sterling Financial said the reconstruction itself did not determine the amount of any future dividend.
The conversion of eligible holdings will be automatic, with no application or payment required from shareholders.
Investors with valid CSCS account and stockbroker details will have their reconstructed shares credited electronically.
However, holders of physical share certificates have been advised to contact Pace Registrars and a licensed stockbroker for assistance in converting their holdings into electronic form.
The company explained that CSCS maintains electronic securities records, while a Clearing House Number identifies an investor within the system.
Holdings without valid CSCS account details will remain with Pace Registrars under a non-tradeable Registrar Identification Number until the required process is completed.
Shareholders with outdated or incomplete records were advised to contact the registrar to update their details.
Sterling Financial also advised investors with transactions awaiting settlement around the suspension period to confirm with their stockbrokers and the registrar how the approved record date and settlement cut-off would apply to their holdings.
Following completion of the adjustments, shareholders were advised to check their revised balances through their stockbrokers, CSCS or Pace Registrars and promptly report any missing or incorrect balances for reconciliation.
Anambra State Government has acknowledged that former Governor Peter Obi performed well during his tenure, while clarifying that its ongoing scrutiny of his administration’s financial records is not intended to discredit his achievements or political ambitions.
The state Commissioner for Information and Value Reorientation, Law Mefor, made the clarification while addressing the controversy surrounding Obi’s claim that he left no financial liabilities for subsequent administrations.
Mefor said the government’s position was focused on establishing the accuracy of the state’s financial records, particularly claims relating to funds allegedly left behind by the former governor.
He specifically questioned Obi’s assertion that his administration left N12.13 billion in an ecological fund account domiciled with First Bank at the Nnamdi Azikiwe University (UNIZIK), Awka branch.
According to the commissioner, the state government requested the relevant account statement from the bank but found no evidence supporting the claimed balance.
Mefor, however, stressed that the financial inquiry should not be interpreted as an attempt to diminish Obi’s record in office.
“The intention of the Anambra State government is not to indict Peter Obi. Peter Obi did well as governor.
“There is no rift between Governor Soludo and Peter Obi. They are both in politics, and they have their interests to defend,” he said.
The comments come amid renewed political exchanges between supporters of Obi, the former Anambra governor and Labour Party presidential candidate, and the administration of Governor Chukwuma Soludo.
While the two politicians have publicly differed over aspects of Anambra’s financial and developmental record, Mefor said the state government’s position was primarily aimed at clarifying the records rather than attacking Obi personally.
Abia State Governor Alex Otti has said he will support President Bola Ahmed Tinubu’s bid for re-election in 2027, despite remaining a member of the opposition Labour Party (LP).
Otti made the clarification during an interview with Arise Television on Friday, where he addressed questions about his relationship with the ruling All Progressives Congress (APC) and his position on Tinubu’s 2027 ambition.
The governor was asked whether his support for Tinubu amounted to a “comfortable arrangement” between him and the ruling party.
Otti agreed with the description, saying his position as a governor and member of the National Economic Council made it difficult for him to openly oppose the President’s re-election bid.
“It works the way you have said. It’s a statement of fact. I am not in a position to oppose his candidacy,” he said.
Otti explained that although he could disagree with some government policies, his membership of the National Economic Council meant he was also part of the broader governance structure through which federal policies and decisions were discussed.
He said openly opposing the President could create unnecessary tension within the system, adding that he preferred to raise disagreements during government meetings.
“And sometimes people don’t understand the opposition. When you say opposition, and you are part of a government, then what you are driving towards is implosion.
“So if I do have a problem with anything, I’ll sit down in one of our meetings and I’ll make my point. So I’m not going to oppose his candidacy,” Otti said.
The Abia governor further stressed that his role in the National Economic Council had placed him directly within the process of implementing and discussing policies of the Federal Government.
“I had also said that as a governor in this republic, that a lot of the things that are being, in fact, I’m part of all the things that have been done as a member of National Economic Council. So, we should distinguish that.
“When somebody now says, ‘Oh, you are supporting or you’re not,’ I have to support him,” he said.
However, Otti appeared to draw a distinction between supporting Tinubu’s re-election and abandoning the Labour Party.
When reminded of his earlier statement that he still had a presidential candidate in the Labour Party, the governor rejected the suggestion that he was referring to Tinubu.
“No, that’s not what I said,” he said.
Asked whether he was referring specifically to a Labour Party presidential candidate, Otti replied, “Yes.”
But when pressed again on whether he supported Tinubu’s 2027 bid, he responded: “What do you expect me to say? To say I’m not supporting him?”
Otti also said Tinubu had the constitutional right to seek another term in office, while noting that some of the President’s policies were consistent with positions he had previously held.
He specifically cited the removal of the petrol subsidy, which he described as unsustainable.
“Quite frankly, there are a lot of things that we have talked about now, that he has implemented, that resonate with me and my thinking.
“People don’t have to agree with me, but from where I sit, I know that for instance, the fuel subsidy was even unsustainable,” Otti said.
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