The Federal Government of Nigeria has begun implementing Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, announced the development on Monday, highlighting key resolutions from the inaugural meeting of the Executive Order’s implementation committee.
The action follows President Bola Tinubu’s directive to ensure that petroleum revenues are remitted directly to FAAC and managed in accordance with constitutional provisions to safeguard funds for all three tiers of government.
“In line with the President’s directive, NNPC Limited shall immediately cease 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.
“Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in accordance with the Executive Order,” it added.
Regarding Section 2(3) of the order, which requires direct payments by contractors into the Federation Account, Edun said the committee agreed that the transition must 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,” the statement said.
“Until detailed guidelines are issued, contractors will continue remitting under the current process. During the transition period, the Committee will provide clear, standardised guidance to ensure an orderly changeover.”
Edun further disclosed that a technical subcommittee has been established to develop detailed transition guidelines within three weeks and to review 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, Permanent Secretary of the Ministry of Justice, Chairman of the Nigeria Revenue Service, Chairman of the Forum of Commissioners of Finance, and representatives of the Minister of State Petroleum Resources, with secretarial support from the Budget Office of the Federation,” the statement added.
Edun said the committee will continue providing coordinated guidance and timely updates as implementation progresses, and he commended stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources deliver tangible benefits to citizens across the federation.
