The Federal Government has initiated steps to enforce Executive Order 9 of 2026, directing that proceeds from petroleum operations be paid directly into the Federation Account Allocation Committee (FAAC).
The action followed the first meeting of the implementation committee set up to oversee the order, which was held on Feb. 26, 2026.
In a statement released on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted major decisions taken at the session.
Edun said the committee reiterated President Bola Tinubu’s instruction that all revenues accruing from oil and gas activities must be handled strictly in accordance with constitutional provisions, protect funds belonging to the federation and strengthen fiscal sustainability at federal, state and local government levels.
According to the minister, NNPC Limited has been directed to immediately discontinue the deduction of the 30 per cent management fee and the 30 per cent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts.
He added that remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have also been halted in compliance with the executive order.
Referring to Section 2(3) of the order, which provides for direct payments by contractors into the federation account, Edun explained that the committee agreed that implementation must take into account existing contractual obligations and financing structures to maintain investor confidence.
To ensure a smooth transition, the committee approved a defined timeframe for contractors to begin direct remittance of profit oil, royalty oil and tax oil into the Federation Account.
The minister noted that, pending the release of comprehensive operational guidelines, contractors would continue to follow the current remittance framework. He assured that clear and uniform directives would be issued during the transition period to guarantee an orderly process.
Edun also announced the establishment of a technical subcommittee tasked with producing detailed transition guidelines within three weeks and commencing a review of the Petroleum Industry Act to address identified structural and fiscal gaps affecting federation earnings.
He disclosed that the subcommittee would be chaired by the Special Adviser to the President on Energy and 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, as well as representatives of the Minister of State for Petroleum Resources (Oil), with the Budget Office of the Federation providing secretariat support.
The minister assured that the committee would continue to issue coordinated directives and periodic updates as implementation advances, while appreciating stakeholders for their collaboration in efforts aimed at ensuring that Nigeria’s oil and gas resources translate into tangible gains for citizens nationwide.
