The Federal Government of Nigeria has commenced the implementation of Executive Order 9 of 2026, mandating the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).
The development 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 Edun, the committee reaffirmed the President’s directive that revenues accruing to the federation from petroleum operations must be managed in line with constitutional principles. He said the move is aimed at safeguarding funds due to the federation and supporting fiscal stability across 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.
He added that all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have also been suspended with immediate effect in line with the executive order.
Citing Section 2(3) of the order, which provides for direct payments by contractors into the federation account, Edun explained that the transition would respect existing contractual and financing arrangements to preserve 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.
He noted that contractors would continue to remit under the current framework until detailed guidelines are issued. During the transition period, the committee will provide clear and standardised guidance to ensure an orderly changeover.
Edun further disclosed that the committee approved the establishment of a technical subcommittee to develop detailed transition guidelines within three weeks. The panel will also commence 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. It will include the Solicitor-General of the Federation and Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, and representatives of the Minister of State for Petroleum Resources (Oil). The Budget Office of the Federation will provide secretarial support.
The minister assured that the committee would continue to offer coordinated guidance and timely updates as implementation progresses. He also commended stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources deliver measurable benefits to citizens across the federation.
