The Federal Government has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues into the Federation Account Allocation Committee (FAAC).
The disclosure came from Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in a statement on Monday summarizing resolutions from the inaugural meeting of the order’s implementation committee.
Edun said the move follows President Bola Tinubu’s directive that all revenues from petroleum operations must be managed according to constitutional provisions to protect funds meant for the 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 read.
Edun also confirmed the suspension of all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), “with immediate effect, in line with the Executive Order.”
Regarding Section 2(3) of the order, which requires contractors to pay directly into the Federation Account, Edun stressed that the transition will “respect existing contractual and financing arrangements while maintaining 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.
“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.”
The minister further revealed that a technical subcommittee has been established to develop detailed transition guidelines within three weeks and to commence a review of the Petroleum Industry Act to address structural and fiscal issues affecting 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, 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, with representation from the Minister of State Petroleum Resources and secretarial support from the Budget Office of the Federation,” Edun said.
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