The Federal Government of Nigeria has officially commenced the rollout of Executive Order 9 of 2026, a presidential directive aimed at safeguarding Nigeria’s petroleum revenues, enhancing fiscal transparency, and ensuring fuller remittances to the Federation Account for the benefit of federal, state, and local governments.
The move follows the inaugural meeting of the Implementation Committee on February 26, 2026, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. The committee reaffirmed President Bola Ahmed Tinubu’s directive that petroleum revenues must be managed in strict adherence to constitutional principles, protecting funds accruable to the Federation while supporting fiscal stability across all tiers of government.
Key immediate actions include:
-NNPC Limited ceasing, 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).
-Suspension of all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), aligning with the Executive Order’s provisions.
Regarding Section 2, Subsection 3 of the Order—which mandates direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account—the committee approved a structured transition period to respect existing contractual obligations and financing arrangements, and to maintain investor confidence. Until detailed guidelines are issued, contractors will continue remittances under the current process. The committee emphasized an orderly transition to avoid disruptions in the sector.
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To drive the process forward, the committee established a Technical Subcommittee tasked with:
-Developing comprehensive guidelines for the shift to direct remittances within three weeks.
-Initiating a review of the Petroleum Industry Act (PIA) to identify and address structural and fiscal anomalies that may undermine Federation revenues.
The Special Adviser will lead the subcommittee to the President on Energy and include key figures such as 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, representatives from the Minister of State for Petroleum Resources (Oil), and secretarial support from the Budget Office of the Federation.
The Implementation Committee, under Minister Edun’s leadership, is committed to providing ongoing coordinated guidance and updates. It commended stakeholders for their cooperation in advancing the President’s agenda to ensure Nigeria’s petroleum resources deliver greater, measurable benefits to citizens nationwide.
The Executive Order, signed in mid-February 2026, builds on earlier efforts to curb revenue leakages, eliminate duplicative structures, and redirect resources toward national priorities amid ongoing calls for improved transparency in the oil and gas sector. Industry observers note the changes could boost funds available for FAAC allocations while prompting broader reforms to the PIA framework.
