The Federal Government has begun enforcing Executive Order 9 of 2026, which directs that oil revenues be paid directly into the Federation Account Allocation Committee (FAAC).
This action follows the first session of the executive order’s implementation committee on February 26, which kicked off the process.
In a statement released Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the major decisions reached during the meeting.
He said the committee restated the President’s instruction that income generated from petroleum activities must be handled in accordance with constitutional provisions, protected for the benefit of the federation, and used to strengthen the financial stability of federal, state, and local governments.
“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.”
Referencing Section 2(3) of the order, which mandates direct payments by contractors into the federation account, Edun said the committee agreed the shift must be carefully managed to honour existing contracts and financing commitments while maintaining investor trust.
“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 also revealed that a technical subcommittee has been set up to prepare detailed transition guidelines within three weeks and commence a review of the Petroleum Industry Act (PIA) to correct structural and fiscal gaps affecting federation earnings.
“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.
He added that the implementation committee will continue to issue coordinated directives and timely updates, while applauding stakeholders for their collaboration in ensuring Nigeria’s oil wealth translates into tangible gains for citizens.
