From Victor Osula, Abuja
The Federal Government has commenced the implementation of Executive Order 9 of 2026, setting a clear timeline for the direct payment of oil proceeds into the Federation Account as part of sweeping reforms ordered by President Bola Tinubu.
The move marks a significant step in the administration’s efforts to strengthen revenue assurance, enhance transparency in petroleum revenue management, and safeguard public funds for the benefit of the three tiers of government.
The decision was reached at the inaugural meeting of the Implementation Committee on Executive Order 9 held on February 26, 2026.
In a statement issued on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that the committee approved a defined transition period for the operationalisation of direct remittances of profit oil, royalty oil, and tax oil into the Federation Account.
Edun explained that while the Executive Order mandates oil contractors to pay these proceeds directly into the Federation Account, the committee resolved that the shift must be carefully managed to respect existing contractual and financing arrangements and maintain investor confidence in the oil and gas sector.
“With respect to Section 2, Sub-section 3 of the Executive Order on direct payments by contractors into the Federation Account, the Committee agreed that this transition must be implemented in a manner that respects existing contractual and financing arrangements and maintains investor confidence,” he stated, adding that until detailed operational guidelines are issued, contractors will continue to remit revenues under the current process, while the committee works to ensure an orderly changeover.
As part of the immediate implementation measures, the government directed that NNPC Limited cease, with immediate effect, 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.
In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have been suspended in compliance with the Executive Order.
To drive the process, the committee approved the establishment of a Technical Subcommittee mandated to develop detailed guidelines for the transition within three weeks.
The subcommittee will also commence a review of the Petroleum Industry Act to address structural and fiscal anomalies that may be weakening revenues accruing to the Federation.
The Technical Subcommittee will be led by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, 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, and representatives of the Minister of State for Petroleum Resources, with secretarial support from the Budget Office of the Federation.
Edun said the Implementation Committee would continue to provide coordinated guidance and timely updates as the reform progresses, noting that the initiative is designed to ensure Nigeria’s petroleum resources deliver measurable and tangible benefits to citizens across the Federation.
