The Federal Government has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to 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.
The move follows a directive by President Bola Tinubu requiring that revenues accruing from petroleum operations be managed strictly in line with constitutional provisions to protect funds due to the three tiers of government.
Edun said the committee reaffirmed the President’s directive, stressing that revenue management must safeguard allocations meant for federal, state and local governments.
“In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30 per cent management fee and the 30 per cent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts,” the statement said.
It added that remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have also been suspended with immediate effect.
On Section 2(3) of the order, which provides for direct payments by contractors into the Federation Account, the minister explained that the transition would respect existing contractual and financing agreements in order to sustain investor confidence.
“For this reason, the Committee approved a defined transition period for the operationalisation of direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account,” Edun said.
He added, “Until detailed guidelines are issued, contractors will continue to remit under the existing framework to ensure stability and predictability in the sector.”
Edun further announced the establishment of a technical subcommittee to develop comprehensive transition guidelines within three weeks and to begin a review of the Petroleum Industry Act to address structural and fiscal issues affecting federation revenues.
“The Technical Subcommittee will, within three weeks, produce clear and standardised guidelines to ensure an orderly transition that aligns with the Executive Order while protecting the interests of the Federation,” he stated.
The subcommittee will be led by the Special Adviser to the President on Energy and will include key officials such as 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.
The minister assured that the committee would continue to provide coordinated guidance as implementation progresses.
“We remain committed to transparency, accountability, and ensuring that Nigeria’s petroleum resources translate into measurable benefits for citizens across the federation,” Edun added.
Last month, President Bola Ahmed 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.
According to analysts, this could unlock an additional ₦14.57 trillion in annual allocations for the Federal Government, states and local governments based on 2025 revenue inflows.
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