The Federal Government has begun implementing Executive Order 9 of 2026, which requires the direct remittance of oil revenues into the Federation Account Allocation Committee

This follows the inaugural meeting of the executive order’s implementation committee on February 26, 2026.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement on Monday, outlining key resolutions reached at the meeting.

The minister stressed that the committee reiterated the president’s directive that all revenues accruing to the federation from petroleum operations must be administered in line with constitutional provisions, protected to secure federation earnings, and managed to promote fiscal stability across the three tiers of government.

“In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs),” the statement reads.

“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 committee also reviewed Section 2(3) of the order, which mandates contractors to remit payments directly into the Federation Account.

The transition will honour existing contractual and financing arrangements to preserve investor confidence.

Contractors will continue remitting under the current framework until detailed implementation guidelines are issued.

A clearly defined transition period has been approved to facilitate the operationalisation of direct payments of profit oil, royalty oil and tax oil into the Federation Account.

The committee approved the creation of a technical subcommittee to draft comprehensive transition guidelines within three weeks and to review the Petroleum Industry Act with a view to addressing structural and fiscal gaps undermining federation revenues.

The subcommittee will be led by the Special Adviser to the President on Energy.

Its members will include 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.

In mid-February, President Bola Tinubu signed the Executive Order suspending the collection of management and frontier exploration fees by Nigerian National Petroleum Company Limited.