Nigeria begins implementation of Executive Order 9 to protect petroleum revenues
The Federal Government has commenced the implementation of Executive Order 9 of 2026 as part of efforts to safeguard petroleum revenues and strengthen the management of inflows into the Federation Account.
This was disclosed in a statement on Monday signed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who chairs the Implementation Committee set up to oversee the execution of the directive.
According to the statement, the committee held its inaugural meeting on February 26, 2026, following a directive by President Bola Ahmed Tinubu that petroleum revenues must be managed in strict adherence to constitutional principles and in a manner that promotes fiscal stability across the three tiers of government.
The committee reaffirmed at the meeting that all revenues accruing to the Federation from petroleum operations must be handled transparently and structured to protect national earnings.
As part of the immediate steps outlined in the statement, NNPC Limited has been directed to cease 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. In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have been suspended.
On the issue of direct payments by contractors into the Federation Account, the statement explained that the committee approved a defined transition period. This, it noted, is to ensure that the shift to direct remittance respects existing contractual and financing arrangements while maintaining investor confidence. Contractors are therefore to continue operating under the current remittance framework pending the release of detailed guidelines.
To facilitate a smooth transition, the committee established a Technical Subcommittee tasked with developing comprehensive guidelines within three weeks. The subcommittee is also expected to commence a review of the Petroleum Industry Act to address structural and fiscal gaps affecting Federation revenues.
The statement added that the subcommittee will be led by the Special Adviser to the President on Energy and will 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.
