The Federal Government of Nigeria has officially commenced the implementation of Executive Order 9 of 2026, mandating the direct remittance of all oil and gas revenues to the Federation Account in a bid to promote transparency and protect public funds.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, who also chairs the Implementation Committee for the Executive Order, made the announcement on Monday. The committee held its inaugural meeting on February 26, 2026, to establish the framework for the reforms directed by President Bola Tinubu.
“President Tinubu has made it clear that all revenues accruing to the Federation must be handled transparently and in a way that protects public funds,” Edun said. “Our committee is committed to ensuring these directives are fully implemented while maintaining investor confidence.”
Under the new measures, the Nigerian National Petroleum Company Limited (NNPCL) has been directed to immediately stop collecting the 30 percent management fee and the 30 percent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs).
Remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have also been suspended with immediate effect.
Regarding the transition to direct payments by contractors into the Federation Account, Edun explained that the process will be carefully managed to honour existing contractual and financing obligations.
“Contractors will continue remitting under the current framework until detailed guidelines are issued,” he stated.
A technical subcommittee has been constituted to develop comprehensive transition guidelines within three weeks. The subcommittee will also review relevant provisions of the Petroleum Industry Act (PIA) to address any structural or fiscal gaps affecting Federation revenues.
The subcommittee is chaired by the Special Adviser to the President on Energy and includes the Solicitor-General of the Federation, 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 the Budget Office of the Federation as secretariat.
Edun expressed confidence in the reforms, saying: “We are optimistic that these reforms will ensure Nigeria’s petroleum resources deliver measurable benefits to citizens across the country.”
The government promised to provide ongoing coordinated guidance and updates, while commending stakeholders for their cooperation in this major national initiative.
The Executive Order, signed by President Tinubu earlier in February 2026, seeks to eliminate certain deductions previously retained by NNPCL and ensure that government entitlements are paid directly into the Federation Account.
The directive has, however, faced opposition from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which has condemned the Executive Order and demanded its withdrawal, citing potential negative impacts on investments, gains from the PIA, and workers’ welfare in the industry.
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