FG begins implementation of executive order on direct oil revenues remittance to FAAC

The federal government says it has commenced theimplementation of Executive Order 9 of 2026, which mandates the directremittance of oil revenues to the Federation Account Allocation Committee (FAAC). The move follows the inaugural meeting of the implementationcommittee for the executive order, held on February 26, 2026. Wale Edun, the minister of finance and coordinating ministerof the economy, announced the development in a statement on Monday, providingdetails on resolutions at the meeting. He said the committee reaffirmed the president’s directivethat revenues accruing to the federation from petroleum operations must behandled in a manner that upholds constitutional principles, protects revenuesaccruable to the federation, and supports the fiscal stability of the threetiers of government. “In line with the President’s directive, NNPC Limited shallcease, with immediate effect, the collection of the 30% management fee and the30% frontier exploration fund deductions from profit oil and profit gas underProduction Sharing Contracts (PSCs),” the statement reads. “Additionally, all remittances of gas flare penalties intothe Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended withimmediate effect, in line with the Executive Order.” On Section 2(3) of the order, which provides for directpayments by contractors into the federation account, Edun said the committeeagreed that the transition must be implemented in a manner that respectsexisting contractual and financing arrangements, and maintains investorconfidence. “For this reason, the Committee approved a definedtransition period for the operationalisation of direct payments by contractorsof profit oil, royalty oil, and tax oil into the Federation Account,” theminister said. “Until the Committee issues detailed guidelines, contractorswill continue to remit under the current process. During the transition period,the Committee will issue clear, standardised guidance to ensure an orderlychangeover.” He said the committee approved the establishment of atechnical subcommittee to develop detailed transition guidelines within threeweeks, and commence a review of the Petroleum Industry Act (PIA) to addressstructural and fiscal anomalies that weaken federation revenues. “The Technical Subcommittee will be led by the SpecialAdviser to the President on Energy, and will include the Solicitor-General ofthe Federation and Permanent Secretary Federal Ministry of Justice, theChairman of the Nigeria Revenue Service, and the Chairman of the Forum ofCommissioners of Finance, representatives of the Minister of State PetroleumResources, Oil, with secretarial support from the Budget Office of theFederation,” Edun said. He added that the committee will continue to providecoordinated guidance and timely updates as implementation progresses,commending stakeholders for their cooperation in advancing efforts to ensurethat Nigeria’s petroleum resources deliver measurable benefits to citizensacross the federation.

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