The Federal Government has moved to strengthen oversight of Nigeria’s petroleum revenues following the inaugural meeting of the Implementation Committee for Executive Order 9, signed by President Bola Ahmed Tinubu.
Among the key resolutions, NNPC Limited will immediately stop deducting the 30% management fee and 30% frontier exploration fund from profit oil and gas under Production Sharing Contracts. In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have been suspended.
Under the new directive, contractors are to make direct payments of profit oil, royalty oil, and tax oil into the Federation Account. However, a transition period has been approved to honour existing contractual obligations and safeguard investor confidence.
A Technical Subcommittee has also been established to develop detailed transition guidelines and review the Petroleum Industry Act to address structural and revenue-related gaps.
The Implementation Committee, chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, pledged continued engagement with stakeholders and regular updates to ensure Nigeria’s petroleum resources deliver greater value to citizens nationwide.
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