The Federal government has commenced the implementation of Executive Order 9 on direct oil revenue remittance to the Federation Account.
The announcement was made on Monday by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who also chairs the Implementation Committee for the Executive Order. The committee held its inaugural meeting on 26 February 2026, to set the framework for 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 reforms, the Nigerian National Petroleum Company Limited (NNPCL) has been instructed to stop collecting 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, PSCs.
Remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), have also been suspended with immediate effect.
On direct payments by contractors into the Federation Account, Edun explained, ‘The transition will be carefully managed to respect existing contractual and financing obligations. Contractors will continue remitting under the current framework until detailed guidelines are issued.”
A technical subcommittee has been set up to develop comprehensive guidelines for the transition within three weeks.
It will also review provisions of the Petroleum Industry Act, PIA, to address structural and fiscal gaps affecting Federation revenues.
Edun added, ‘We are optimistic that these reforms will ensure Nigeria’s petroleum resources deliver measurable benefits to citizens across the country’.
The subcommittee will be chaired by the Special Adviser to the President on Energy and include the Solicitor-General of the Federation, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, and representatives of the Minister of State for Petroleum Resources (Oil), with the Budget Office of the Federation serving as secretariat.
Edun added, ‘The government will continue to provide coordinated guidance and updates as the reforms progress, and we commend stakeholders for their cooperation in this important national initiative’.
Earlier, President Tinubu had issued an Executive Order on direct revenue remittance to the Federation account.
The Executive Order is believed to have cut streams of income for the NNPCL as the oil behemoth ceases 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, PSCs.
The Petroleum and Natural Gas Senior Staff Association of Nigeria had condemned the Executive Order and called for its withdrawal.
