Federal Government has officially commenced the implementation of Executive Order 9 of 2026, a landmark policy directive mandating the direct remittance of oil and gas revenues into the Federation Account Allocation Committee (FAAC) to strengthen transparency, accountability, and fiscal discipline in Nigeria’s public finance system.
Gatekeepers News reports that the development follows the inaugural meeting of the executive order’s implementation committee held on February 26, 2026, where far-reaching resolutions were adopted to overhaul long-standing revenue handling practices within the petroleum sector.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday, outlining key decisions reached at the high-level meeting.
Edun said the committee reaffirmed President Bola Tinubu’s directive that all revenues accruing from petroleum operations must be managed strictly in line with constitutional provisions, while safeguarding funds meant for the federation and supporting economic stability across the federal, state, and local government tiers.
As part of the immediate reforms, the Nigerian National Petroleum Company (NNPC) Limited has been ordered to discontinue the collection of its long-standing 30 per cent management fee and the 30 per cent frontier exploration fund deductions from profit oil and gas generated under Production Sharing Contracts (PSCs).
According to the statement, the deductions, which have attracted widespread criticism over the years, will cease with immediate effect to ensure full transparency in revenue inflows.
In addition, the Federal Government announced the suspension of all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF). The suspension is aimed at realigning revenue flows with the new fiscal framework established under the executive order and preventing leakages.
Addressing the provision of Section 2(3) of the executive order, which mandates direct payments by oil contractors into the federation account, Edun explained that the transition would be carried out carefully to protect existing contractual obligations, financing arrangements, and investor confidence.
He disclosed that a clearly defined transition period has been approved, during which contractors will continue to remit revenues through the current structure until fresh operational guidelines are issued.
The minister said the committee would soon release standardised procedures to ensure a seamless and orderly shift to direct remittances of profit oil, royalty oil, and tax oil into the federation account. He added that the gradual transition is necessary to avoid disruptions to ongoing petroleum operations and international financing agreements.
To fast-track the reforms, the committee also approved the creation of a technical subcommittee mandated to produce detailed implementation guidelines within three weeks. The subcommittee will equally undertake a comprehensive review of the Petroleum Industry Act (PIA) to identify and address legal, fiscal, and structural gaps that weaken federal revenue generation.
The technical team will be led by the Special Adviser to the President on Energy and 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, representatives of the Minister of State for Petroleum Resources (Oil), and officials of the Budget Office of the Federation, which will provide secretarial support.
Edun said the main committee will continue to issue regular updates as the reform process advances, while commending all stakeholders for their cooperation. He stressed that the reforms are designed to ensure Nigeria’s petroleum resources translate into tangible economic benefits, improved public services, and sustainable development for citizens across the federation.
