Ayomide Bello
The Federal Government has begun implementing Executive Order 9 of 2026, mandating the direct payment of oil and gas revenues into the Federation Account Allocation Committee (FAAC), in a move aimed at strengthening transparency and boosting fiscal stability across the three tiers of government.
The rollout follows the inaugural meeting of the Executive Order’s Implementation Committee on February 26, 2026.
In a statement issued Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the committee reaffirmed President Bola Ahmed Tinubu’s directive that petroleum revenues due to the federation must be managed strictly in line with constitutional provisions.
According to Edun, the new policy is designed to safeguard federation revenues and ensure greater fiscal stability for federal, state, and local governments.
Immediate Changes to NNPC Deductions
A major resolution from the meeting is that NNPC Limited will immediately stop deducting the 30 percent management fee and the 30 percent frontier exploration fund 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 Period for Contractors
While Section 2(3) of the Order provides for direct payments by contractors into the Federation Account, the committee agreed that the transition must respect existing contractual obligations and financing arrangements to preserve investor confidence.
To ensure a smooth shift, a defined transition period has been approved. During this period, contractors will continue to remit revenues under the current framework until detailed operational guidelines are issued.
Edun explained that standardized procedures will be developed to guarantee an orderly migration to the new remittance structure.
Technical Subcommittee to Review PIA
The committee also approved the establishment of a technical subcommittee, which has been given three weeks to produce detailed transition guidelines.
The 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
The Chairman of the Forum of Commissioners of Finance
Representatives of the Minister of State for Petroleum Resources (Oil)
Secretarial support from the Budget Office of the Federation
Beyond the transition framework, the committee will also begin a review of the Petroleum Industry Act to address structural and fiscal gaps affecting federation revenues.
Commitment to Transparency and Fiscal Stability
Edun said the implementation committee will continue to provide coordinated guidance and timely updates as the process unfolds. He also commended stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources translate into tangible benefits for citizens across the federation.
The new directive signals a significant shift in the management of oil and gas revenues, with the Federal Government positioning it as a critical step toward improved accountability and enhanced revenue flows to FAAC.