The Federal Ministry of Finance has commenced the implementation of Executive Order 9 of 2026, marking the beginning of a structured transition to direct remittance of petroleum revenues into the Federation Account.
At its inaugural meeting on February 26, 2026, the Implementation Committee reaffirmed President Bola Ahmed Tinubu’s directive that all revenues accruing to the Federation from petroleum operations must be handled in line with constitutional provisions and designed to protect the fiscal stability of the federal, state, and local governments.
NNPC Ordered to End Key Deductions
Under the new directive, NNPC Limited will 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 (PSCs).
In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have been suspended in line with the Executive Order.
Transition to Direct Payments
With respect to direct contractor payments into the Federation Account, the Committee approved a defined transition period to allow for alignment with existing contractual and financing arrangements, while safeguarding investor confidence.
Until detailed operational guidelines are issued, contractors will continue remittances under the current system. The Committee stated that standardised procedures will be released to ensure an orderly shift to the new remittance structure.
Technical Subcommittee to Issue Guidelines
A Technical Subcommittee has been established to develop detailed transition guidelines within three weeks and to begin a review of the Petroleum Industry Act (PIA) to address structural and fiscal gaps affecting Federation revenues.
The Subcommittee will be led by the Special Adviser to the President on Energy and includes 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), with secretarial support from the Budget Office of the Federation.
Chairman of the Implementation Committee and Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the government remains committed to ensuring that Nigeria’s petroleum resources translate into measurable benefits for citizens across the Federation.
The Committee pledged continued coordination and timely updates as implementation progresses.
