Elegbede Abiodun
* Following the directive of President Bola Tinubu on revenues.
The Federal Government has commenced the implementation of Executive Order 9 of 2026, mandating the direct remittance of oil revenues into the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday following the inaugural meeting of the implementation committee set up to enforce the directive.
According to the minister, the move aligns with the directive of President Bola Tinubu that all revenues accruing to the federation from petroleum operations be managed strictly in accordance with constitutional provisions and in a manner that protects allocations meant for the three tiers of government.
As part of the immediate measures, NNPC Limited has been directed to stop 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.
In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have been suspended with immediate effect in line with the executive order.
Addressing Section 2(3) of the order, which mandates direct payments by contractors into the Federation Account, Edun explained that the transition would be carefully managed to respect existing contractual and financing arrangements while sustaining investor confidence.
To ensure a smooth shift, the committee approved a defined transition period for contractors to begin direct payments of profit oil, royalty oil and tax oil into the Federation Account. Until detailed guidelines are issued, contractors will continue remittances under the current framework. The committee is expected to provide clear and standardised guidance to guarantee an orderly transition.
Furthermore, the committee approved the establishment of a technical subcommittee tasked with developing comprehensive transition guidelines within three weeks. The panel will also initiate a review of the Petroleum Industry Act to address structural and fiscal issues impacting federation revenues.
The Technical Subcommittee will be chaired by the Special Adviser to the President on Energy and will include key officials such as the Solicitor-General of the Federation, the Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance. The Budget Office of the Federation will serve as the secretariat.
Edun assured stakeholders that the committee would continue to provide coordinated guidance and timely updates as implementation progresses, while commending all parties for their cooperation in ensuring that Nigeria’s petroleum resources deliver tangible benefits to citizens nationwide.
