March 2, 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 move aimed at strengthening transparency and accountability in Nigeria’s petroleum revenue management.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Monday after the inaugural meeting of the implementation committee set up following a directive by President Bola Tinubu.

According to Edun, the committee reaffirmed the President’s position that all revenues from petroleum operations must be handled in strict compliance with constitutional provisions, ensuring that funds due to the three tiers of government are fully safeguarded.

As part of the new measures, NNPC Limited has been directed to immediately discontinue the deduction of 30 per cent management fees and 30 per cent frontier exploration funds from profit oil and gas under Production Sharing Contracts.

The government also announced the immediate suspension of gas flare penalty remittances into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), in line with provisions of the executive order.

On the implementation framework, Edun explained that while the order provides for direct payments by contractors into the federation account, the transition will be carefully managed to respect existing contractual obligations and sustain investor confidence.

He noted that a defined transition period has been approved, during which contractors will continue with the current remittance process pending the issuance of detailed operational guidelines.

“To ensure a seamless transition, the committee will provide clear and standardised directives to guide the eventual full implementation of direct payments into the Federation Account,” the minister said.

Edun further revealed that a technical subcommittee has been constituted to develop transition guidelines within three weeks and to initiate a review of the Petroleum Industry Act to address structural and fiscal gaps affecting federation revenues.

The subcommittee will be led by the Special Adviser to the President on Energy and will include key officials from the Ministry of Justice, the Nigeria Revenue Service, the Forum of Commissioners of Finance, as well as representatives from the Ministry of Petroleum Resources and the Budget Office of the Federation.

The minister added that the committee will continue to provide updates as implementation progresses, while commending stakeholders for their cooperation in ensuring that Nigeria’s oil wealth delivers tangible benefits to citizens nationwide.