Quick Summary:
Federal Government begins enforcement of President Tinubu’s directive mandating direct remittance of oil revenues into FAAC, ending NNPC’s management fee and frontier fund deductions.
The Federal Government has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues into the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday following the inaugural meeting of the implementation committee established to enforce the order.
The move follows a directive by President Bola Tinubu requiring that revenues from petroleum operations be managed strictly in line with constitutional provisions to protect funds due to the federal, state, and local governments.
NNPC to Cease Deductions
Edun stated that the committee reaffirmed the President’s directive, emphasizing that revenue management must safeguard allocations meant for all tiers of government.
He added that remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have also been suspended with immediate effect.
Transition Period and Investor Confidence
Addressing Section 2(3) of the order, which provides for direct payments by contractors into the Federation Account, Edun explained that the transition process would respect existing contractual and financing agreements to maintain investor confidence.
Until detailed guidelines are issued, contractors will continue remitting under the existing framework to ensure stability and predictability in the sector.
Technical Subcommittee and PIA Review
Edun announced the creation of a technical subcommittee tasked with developing comprehensive transition guidelines within three weeks and initiating a review of the Petroleum Industry Act (PIA) to address structural and fiscal issues affecting federation revenues.
The subcommittee will be led 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.
Commitment to Transparency and Accountability
Edun reaffirmed the government’s commitment to transparency, accountability, and equitable resource management, assuring that the committee would continue to provide coordinated guidance as implementation progresses.
