The Federal Government has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).
The move follows the inaugural meeting of the implementation committee for the executive order, held on February 26, 2026.
In a statement issued on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, outlined key resolutions reached at the meeting.
According to him, the committee reaffirmed the president’s directive that revenues accruing to the federation from petroleum operations must be managed in line with constitutional principles, safeguard funds due to the federation, and support the fiscal stability of the three 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),” the statement read.
“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.”
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Citing Section 2(3) of the order, which provides for direct payments by contractors into the federation account, Edun explained that the committee agreed the transition must respect existing contractual and financing arrangements while preserving 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.
“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,” he said.
Edun further disclosed that the committee approved the creation of a technical subcommittee to develop detailed transition guidelines within three weeks and begin a review of the Petroleum Industry Act (PIA) to address structural and fiscal anomalies 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 and Permanent Secretary, Federal Ministry of Justice; the Chairman of the Nigeria Revenue Service; and the Chairman of the Forum of Commissioners of Finance, as well as representatives of the Minister of State for Petroleum Resources (Oil), with secretarial support from the Budget Office of the Federation,” he said.
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