The Federal Government of Nigeria has begun implementing Executive Order 9 of 2026, which mandates that oil revenues be directly remitted into the Federation Account Allocation Committee (FAAC).
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, disclosed this on Monday in a statement following the inaugural meeting of the implementation committee set up to enforce the order.
The directive follows instructions from President Bola Tinubu requiring that revenues from petroleum operations be managed strictly according to constitutional provisions to protect funds due to the federal, state, and local governments.
Edun said the committee reaffirmed the President’s directive, emphasizing that revenue management must safeguard allocations for all three tiers of government.
“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 also noted that remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have been suspended immediately.
Regarding Section 2(3) of the order, which requires direct payments by contractors into the Federation Account, Edun explained that the transition will respect existing contractual and financing agreements to maintain 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,” he 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 also announced the creation of a technical subcommittee to develop comprehensive transition guidelines within three weeks and review 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 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 will continue providing 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.