Nigeria has begun implementing Executive Order No. 9 of 2026, a sweeping fiscal directive issued by President Bola Tinubu aimed at tightening oversight of petroleum revenues and strengthening remittances into the Federation Account.
The inaugural meeting of the implementation committee was held on February 26 in Abuja and chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The committee reaffirmed the administration’s commitment to ensuring that oil and gas revenues are managed in strict compliance with constitutional provisions and in a manner that safeguards fiscal stability across federal, state and local governments.
A central provision of the executive order mandates the direct remittance of petroleum revenues into the Federation Account Allocation Committee (FAAC). In line with this directive, NNPC Limited has been instructed to suspend the deduction of a 30 percent management fee and a 30 percent Frontier Exploration Fund charge from profit oil and profit gas under Production Sharing Contracts (PSCs). The order also halts remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund pending further clarification.
Officials said a defined transition period has been approved to ensure operational continuity while detailed guidelines are developed. A technical subcommittee—comprising senior government officials, including representatives from the Ministries of Finance and Justice, the revenue authorities, and energy advisers—has been given three weeks to submit a framework for the new remittance structure.
In a significant policy signal, Edun confirmed that the government will commence a review of the Petroleum Industry Act (PIA). The review is expected to examine fiscal provisions, close perceived structural loopholes, and align the law with evolving market and revenue realities.
The move has drawn support from the Nigeria Governors’ Forum, which has long advocated for improved transparency and predictable inflows into the Federation Account.
Executive Order 9 represents one of the most consequential fiscal reforms in Nigeria’s oil and gas sector since the enactment of the PIA, underscoring the administration’s broader push to enhance revenue mobilisation, transparency, and intergovernmental fiscal balance.
ELIJAH ADEYEMI
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