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 development follows the inaugural meeting of the implementation committee for the executive order, held on February 26, 2026.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday, outlining key resolutions reached at the meeting.
According to the minister, the committee reaffirmed President Bola Tinubu’s directive that revenues generated from petroleum operations must be managed in line with constitutional provisions, safeguard federation earnings, and promote fiscal stability across the three tiers of government.
The statement noted that, with immediate effect, NNPC Limited will 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).
It also announced the immediate suspension of remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), in compliance with the executive order.
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On provisions requiring direct payments by contractors into the federation account, Edun explained that the transition would be implemented carefully to respect existing contractual and financing obligations while maintaining investor confidence.
He said the committee approved a defined transition period before contractors begin direct remittances of profit oil, royalty oil, and tax oil into the federation account. Until detailed operational guidelines are released, contractors will continue remitting revenues under the current arrangement.
To facilitate the process, the committee approved the establishment of a technical subcommittee tasked with developing comprehensive transition guidelines within three weeks and initiating a review of the Petroleum Industry Act (PIA) to address structural and fiscal gaps affecting federation revenues.
The technical subcommittee, to be led by the President’s Special Adviser on Energy, will include key government 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 representatives of state finance commissioners and the Ministry of Petroleum Resources.
Edun added that the implementation committee would continue to provide coordinated guidance and regular updates, while commending stakeholders for supporting efforts aimed at ensuring Nigeria’s petroleum resources deliver tangible benefits to citizens nationwide.