The Federal Government of Nigeria has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of all petroleum revenues to the Federation Account Allocation Committee (FAAC). This follows the inaugural meeting of the order’s implementation committee, held on February 26, 2026.
In a statement, Minister of Finance and Coordinating Minister of the Economy Wale Edun detailed key resolutions. The committee reaffirmed the President’s directive that petroleum revenues must be managed in accordance with constitutional principles to safeguard federation funds and support the fiscal stability of federal, state, and local governments.
The order triggers immediate operational changes. NNPC Limited must cease collection of its 30% management fee and the 30% frontier exploration fund from profit oil and gas under Production Sharing Contracts. Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund are suspended.
To ensure an orderly transition, the committee approved a defined period during which contractors will continue remitting revenues under existing processes until new guidelines are issued. This approach respects current contractual and financing arrangements while preserving investor confidence, as required by the Executive Order.
A technical subcommittee, led by the President’s Special Adviser on Energy and including the Solicitor-General of the Federation, Chairman of the Nigeria Revenue Service, and representatives of the Minister of State for Petroleum Resources (Oil), has been established. It is tasked with developing detailed transition guidelines within three weeks. The subcommittee will also initiate a review of the Petroleum Industry Act to address structural and fiscal issues impacting federation revenues.
The implementation committee will provide coordinated guidance and updates as the process advances. The government emphasized that stakeholder cooperation is essential to ensure Nigeria’s petroleum resources deliver measurable benefits to citizens across all tiers of government, aligning with broader efforts to enhance transparency and fiscal federalism in the oil and gas sector.
