Abuja, Nigeria – March 3, 2026 – The Federal Government has commenced the implementation of Executive Order 9 of 2026, mandating the direct remittance of oil revenues into the Federation Account Allocation Committee (FAAC), in a landmark move to ensure constitutional compliance and protect allocations meant for the three tiers of government.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday following the inaugural meeting of the implementation committee set up to enforce the directive.
According to the minister, the move aligns with the directive of President Bola Tinubu that all revenues accruing to the federation from petroleum operations be managed strictly in accordance with constitutional provisions. The executive order is designed to ensure that allocations meant for federal, state, and local governments are fully protected and transparently accounted for.
“This administration is committed to ensuring that Nigeria’s petroleum resources deliver tangible benefits to citizens nationwide,” Edun stated.
As part of the immediate measures under Executive Order 9, NNPC Limited has been directed to stop the deduction of the 30 per cent management fee and the 30 per cent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts.
Additionally, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have been suspended with immediate effect in line with the executive order.
Addressing Section 2(3) of the order, which mandates direct payments by contractors into the Federation Account, Edun explained that the transition would be carefully managed to respect existing contractual and financing arrangements while sustaining investor confidence.
To ensure a smooth shift, the committee approved a defined transition period for contractors to begin direct payments of profit oil, royalty oil, and tax oil into the Federation Account. Until detailed guidelines are issued, contractors will continue remittances under the current framework. The committee is expected to provide clear and standardized guidance to guarantee an orderly transition.
The committee further approved the establishment of a technical subcommittee tasked with developing comprehensive transition guidelines within three weeks. The panel will also initiate a review of the Petroleum Industry Act to address structural and fiscal issues impacting federation revenues.
The Technical Subcommittee will be chaired 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, Federal Ministry of Justice
– The Chairman, Nigeria Revenue Service
– The Chairman, Forum of Commissioners of Finance
The Budget Office of the Federation will serve as the secretariat.
The technical subcommittee is expected to deliver comprehensive transition guidelines within three weeks, after which detailed implementation directives will be issued to all contractors and stakeholders. Until then, existing remittance arrangements will continue to ensure operational continuity and contractual stability.
Edun assured stakeholders that the committee would continue to provide coordinated guidance and timely updates as implementation progresses. He commended all parties for their cooperation in ensuring that Nigeria’s petroleum resources deliver tangible benefits to citizens nationwide.
“We are committed to transparency, constitutional compliance, and the prudent management of our petroleum resources for the benefit of all Nigerians,” the minister concluded.
Executive Order 9 represents one of the most significant fiscal reforms in Nigeria’s oil and gas sector in recent years. By redirecting revenues directly to FAAC, the federal government aims to:
– Enhance transparency in petroleum revenue management
– Ensure timely and complete remittances to all tiers of government
– Address structural inefficiencies in the revenue collection framework
– Strengthen the fiscal foundation for national development
As implementation progresses, stakeholders across the oil and gas value chain will be watching closely to see how the transition affects contractual arrangements, investor confidence, and ultimately, the flow of revenues to state and local governments.
