The Federal Government has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues into the Federation Account Allocation Committee (FAAC).
The move follows the inaugural meeting of the implementation committee for the executive order, held on February 26, 2026.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, announced the development in a statement on Monday, highlighting resolutions from the meeting.
What they are saying
The minister emphasised that the committee reaffirmed the president’s directive that revenues accruing to the federation from petroleum operations must be managed in a manner that upholds constitutional principles, safeguards federation revenues, and supports fiscal stability across the three tiers of government.
- “In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs),” the statement reads.
- “Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in line with the Executive Order.”
The committee also discussed provisions under Section 2(3) of the order, which requires contractors to make direct payments into the Federation Account.
The transition will respect existing contractual and financing arrangements to maintain investor confidence.
Contractors will continue remitting under the current process until detailed guidelines are issued.
A defined transition period has been approved for the operationalisation of direct payments of profit oil, royalty oil, and tax oil into the Federation Account.
The approach is designed to ensure an orderly and transparent changeover without disrupting ongoing petroleum operations.
More Insights
The committee approved the establishment of a technical subcommittee tasked with developing detailed transition guidelines within three weeks. It will also review the Petroleum Industry Act (PIA) to address structural and fiscal gaps that weaken federation revenues.
- The Technical Subcommittee will be led by the Special Adviser to the President on Energy.
- Members will include the Solicitor-General of the Federation, the Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance.
Representatives of the Minister of State for Petroleum Resources will also be included, with secretarial support from the Budget Office of the Federation.
What you should know
In mid-February, President Bola Tinubu signed the Executive Order suspending the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPCL).
The order also directs the full remittance of oil and gas revenues to the Federation Account, reinforcing transparency and fiscal discipline in the sector.
