The Federal Government has begun implementing Executive Order 9 of 2026, requiring the direct remittance of oil revenues to the Federation Account Allocation Committee.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this in a statement released on Monday. He outlined the main decisions from the recent meeting.

The action follows President Bola Tinubu’s directive on remittances to FAAC. It also stems from the first meeting of the committee set up to implement the executive order.

Edun stated that the committee confirmed the President’s instruction. Revenues from petroleum operations due to the federation must follow constitutional rules and protect funds for the federal, state, and local governments.

“In line with the President’s directive, NNPC Limited shall 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.

“Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in line with the Executive Order,” the statement read.

Regarding Section 2(3) of the order on direct payments by contractors to the federation account, the minister noted the committee’s agreement. The shift must honor current contracts and financing deals while keeping investor trust intact.

“For this reason, the Committee approved a defined transition period for the operationalisation of direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account.

“Until the Committee issues detailed guidelines, contractors will continue to remit under the current process. During the transition period, the Committee will issue clear, standardised guidance to ensure an orderly changeover,” the statement added.

Edun revealed that the committee approved forming a technical subcommittee. This group will create detailed transition guidelines within three weeks. It will also start reviewing the Petroleum Industry Act to fix structural and fiscal issues impacting federation revenues.

“The Technical Subcommittee will be led by the Special Adviser to the President on Energy, and will include the Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance, representatives of the Minister of State Petroleum Resources, Oil, with secretarial support from the Budget Office of the Federation,” it said.

The minister stated that the committee will keep offering coordinated advice. It will provide regular updates during the implementation process.

He praised stakeholders for their support. This cooperation helps ensure Nigeria’s petroleum resources bring real advantages to citizens throughout the federation.