The Federal Government has commenced the implementation of Executive Order 9 of 2026, directing that all oil-related revenues be remitted directly into the Federation Account Allocation Committee (FAAC).

This was disclosed on Monday by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following the inaugural meeting of the committee set up to oversee enforcement of the directive.

The policy stems from an instruction by President Bola Tinubu, mandating that proceeds from petroleum operations be handled strictly in accordance with constitutional provisions, with the aim of safeguarding funds meant for federal, state, and local governments.

According to Edun, the committee reaffirmed the President’s directive, stressing that revenue management must protect allocations due to the three tiers of government.

“In line with the President’s directive, NNPC Limited shall, with immediate effect, discontinue 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,” the statement read.

The minister also announced that remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have been suspended with immediate effect.

Regarding Section 2(3) of the order, which requires contractors to make direct payments into the Federation Account, Edun explained that the transition would take into account existing contractual and financing arrangements to preserve investor confidence.

“To this end, the Committee approved a defined transition period for the operationalisation of direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account,” he said.

He added that, pending the issuance of detailed implementation guidelines, contractors would continue remitting under the current framework to ensure stability and predictability in the sector.

Edun further revealed that a technical subcommittee has been established to develop comprehensive transition guidelines within three weeks, alongside a review of the Petroleum Industry Act to address structural and fiscal concerns affecting federation revenues.

“The Technical Subcommittee will, within three weeks, produce clear and standardised guidelines to ensure an orderly transition that aligns with the Executive Order while protecting the interests of the Federation,” he stated.

The subcommittee will be chaired by the Special Adviser to the President on Energy and will 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 assured that the committee would continue to provide coordinated guidance throughout the implementation process.

“We remain committed to transparency, accountability, and ensuring that Nigeria’s petroleum resources translate into measurable benefits for citizens across the federation,” he added.