The Federal Government has begun implementing Executive Order 9 of 2026. The order mandates the direct payment of oil revenues into the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement after a meeting of the implementation committee. The move follows a directive by Bola Tinubu.
According to Edun, the committee reaffirmed that all petroleum revenues must comply with constitutional provisions. He said the policy will protect funds meant for the federal, state and local governments.
In line with the directive, NNPC Limited will immediately stop collecting the 30 per cent management fee and the 30 per cent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts.
In addition, the government has suspended the remittance of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund.
Officials say these changes will increase the funds paid directly into the federation account. As a result, FAAC allocations may improve.
However, the committee stressed that the transition must respect existing contracts and financing arrangements. Therefore, it approved a defined transition period for contractors to begin direct payments of profit oil, royalty oil and tax oil into the federation account.
Until the committee issues detailed guidelines, contractors will continue under the current system. Meanwhile, the committee will release clear instructions to ensure a smooth changeover.
Furthermore, the committee approved a technical subcommittee to draft transition guidelines within three weeks. The panel will also review the Petroleum Industry Act to address structural and fiscal gaps affecting federation revenues.
The Special Adviser to the President on Energy will lead the subcommittee. Other members 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.
Edun said the committee will continue to provide updates as implementation progresses. He also praised stakeholders for supporting reforms aimed at ensuring Nigeria’s oil wealth benefits citizens across the country.
