The Federal Government has officially begun the implementation of Executive Order 9 of 2026, a directive mandating the direct remittance of all oil and gas revenues into the Federation Account. This significant fiscal reform aims to bolster the safeguarding of federal revenues and enhance the management of petroleum revenue flows across all three tiers of government. Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, confirmed the commencement of this initiative in a statement released on Monday, March 2, 2026, following the inaugural meeting of the Executive Order 9 implementation committee held on February 26, 2026.

During the implementation committee meeting, the President’s directive was reaffirmed, emphasizing that revenues from petroleum operations must be managed in strict adherence to constitutional principles. This approach is designed to protect the Federation’s revenues and ensure the fiscal stability of federal, state, and local governments.

In line with the Executive Order, the Nigerian National Petroleum Company (NNPC) Limited will immediately cease the collection of the 30 percent management fee and the 30 percent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs). Furthermore, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have been suspended with immediate effect.

Addressing the provisions for direct payments by contractors into the Federation Account, as stipulated in Section 2, Sub-section 3 of Executive Order 9, the committee acknowledged the need for a transition that respects existing contractual and financing arrangements to maintain investor confidence. Consequently, a defined transition period has been approved for the operationalisation of direct payments of profit oil, royalty oil, and tax oil. Until the committee issues detailed guidelines, contractors will continue to remit revenues under the current process. The committee committed to issuing clear, standardized guidance during this transition period to ensure an orderly changeover.

To facilitate this transition, the committee has approved the establishment of a Technical Subcommittee. This subcommittee, expected to develop detailed guidelines within three weeks, will also undertake a review of the Petroleum Industry Act (PIA) to address any structural and fiscal anomalies that may weaken Federation revenues. The Technical Subcommittee will be chaired by the Special Adviser to the President on Energy and will include representation from the Solicitor-General of the Federation and Permanent Secretary Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, and representatives of the Minister of State for Petroleum Resources. Secretarial support for the subcommittee will be provided by the Budget Office of the Federation.

The committee expressed gratitude for the cooperation of all stakeholders in advancing the President’s objective to ensure that Nigeria’s petroleum resources yield tangible, measurable benefits for all citizens across the Federation. The implementation of Executive Order 9 signals a renewed commitment to transparency and fiscal discipline within Nigeria's critical oil and gas sector.