The Federal Government has kicked off the enforcement of Executive Order 9 of 2026, directing that earnings from petroleum operations be paid straight into the Federation Account Allocation Committee.
The development was announced on Monday by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, after a meeting of the implementation committee set up to drive the order.
The move follows instructions from President Bola Tinubu aimed at ensuring that revenues from oil and gas operations are handled strictly in line with constitutional provisions and fairly distributed among the federal, state and local governments.
Under the new directive, the NNPC Limited has been ordered to immediately halt the deduction of its 30 per cent management fee as well as the 30 per cent allocation previously set aside for frontier exploration from profit oil and gas under Production Sharing Contracts.
The government also suspended the payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, pending further clarification under the executive order.
Although the order provides for oil contractors to make direct payments of profit oil, royalty oil and tax oil into the federation account, the committee approved a transition window to allow for adjustments. Officials said the shift would take into account existing contractual obligations and financing structures to avoid disrupting investor confidence.
During this interim period, companies will continue to remit funds through the current process until comprehensive operational guidelines are released.
To ensure a smooth rollout, the committee set up a technical subcommittee that will, within three weeks, produce detailed procedures for the transition. The team will also begin a review of the Petroleum Industry Act to address concerns about structural and fiscal gaps affecting federation earnings.
The subcommittee will be headed by the Special Adviser to the President on Energy and will include key officials from the Ministry of Justice, the Nigeria Revenue Service, representatives of the petroleum ministry and the Forum of Commissioners of Finance, with administrative support from the Budget Office of the Federation.
Edun noted that the committee would continue to provide updates as the implementation progresses and expressed appreciation to stakeholders for their cooperation in repositioning Nigeria’s oil revenue management framework to deliver greater value to citizens.
