Dare Babalola
The Federal Government has announced the commencement of Executive Order 9 of 2026, mandating the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday, outlining key outcomes from the meeting.
This development follows the inaugural meeting of the Executive Order Implementation Committee, which convened on 26 February 2026.
He stated that the committee reiterated President Bola Tinubu’s directive that revenues from petroleum operations be managed in accordance with constitutional principles, safeguarding federation revenues and ensuring fiscal stability across all 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).
“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 statement reads.
Regarding Section 2(3) of the order, which stipulates direct payments by contractors into the federation account, Edun noted that the committee agreed to implement the transition in a way that respects existing contracts, financing arrangements, and preserves investor confidence.
The minister said, “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.
“Until the Committee issues detailed guidelines, contractors will continue to remit under the current process. During the transition period, the Committee will issue clear, standardised guidance to ensure an orderly changeover.”
Eseun stated that the committee approved the formation of a technical subcommittee tasked with developing detailed transition guidelines within three weeks.
Additionally, the subcommittee will review the Petroleum Industry Act (PIA) to address structural and fiscal issues impacting federation revenues.
“The Technical Subcommittee will be led by the Special Adviser to the President on Energy, and will include the Solicitor-General of the Federation and Permanent Secretary 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 Petroleum Resources, Oil, with secretarial support from the Budget Office of the Federation,” Edun said.
He added that the committee will continue to provide coordinated guidance and timely updates as implementation progresses, commending stakeholders for their cooperation in advancing efforts to ensure that Nigeria’s petroleum resources deliver measurable benefits to citizens across the federation.
