The federal government has started implementing Executive Order 9 of 2026, which directs that oil revenues be remitted directly to the Federation Account Allocation Committee (FAAC).
Finance Minister Wale Edun announced on Monday that the implementation follows the inaugural meeting of the order’s committee on February 26, 2026. The committee reaffirmed the president’s directive to ensure petroleum revenues are managed constitutionally, protect federal earnings, and support fiscal stability across all tiers of government.
Key decisions include:
- NNPC Limited will immediately stop collecting the 30% management fee and 30% frontier exploration fund deductions from profit oil and gas under Production Sharing Contracts (PSCs).
- Remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended.
- Contractors will transition to direct payments of profit oil, royalty oil, and tax oil into the Federation Account in a phased approach to respect existing contracts and maintain investor confidence.
A technical subcommittee will issue detailed transition guidelines within three weeks and review the Petroleum Industry Act (PIA) to address structural and fiscal gaps affecting federation revenues.
