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The Federal Government has commenced the enforcement of Executive Order 9 (2026), which requires oil revenues to be paid directly into the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this during a media briefing on Monday in Abuja.
He said: “In line with the President’s directive, NNPC Limited shall cease, with immediate effect, 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.”
“All remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in line with the Executive Order.”
The minister explained that while Section 2(3) of the order provides for direct payments by contractors into the federation account, the committee agreed that the transition must be gradual: “Until the Committee issues detailed guidelines, contractors will continue to remit under the current process. During the transition period, the Committee will issue clear, standardised guidance to ensure an orderly changeover.”
To manage this shift, a technical subcommittee has been established to draft transition guidelines within three weeks and review the Petroleum Industry Act. According to Edun, “The Technical Subcommittee will be led by the Special Adviser to the President on Energy, and will include the Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance, representatives of the Minister of State Petroleum Resources, Oil, with secretarial support from the Budget Office of the Federation.”
Edun concluded by commending stakeholders for their cooperation, stressing that the reforms are designed to ensure Nigeria’s petroleum wealth delivers “measurable benefits to citizens across the federation.”
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