The Federal Government has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to the Federation Account Allocation Committee.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued on Monday, detailing key resolutions reached at the meeting.

This followed the directive of President Bola Tinubu on the remittance to FAAC and the inaugural meeting of the implementation committee for the executive order.

Edun said the committee reaffirmed the President’s directive that revenues accruing to the federation from petroleum operations must be managed in line with constitutional provisions and in a way that safeguards funds meant for the three tiers of government.

“In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30 per cent management fee and the 30 per cent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts.

“Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in line with the Executive Order,” the statement read.

On Section 2(3) of the order, which provides for direct payments by contractors into the federation account, the minister said the committee agreed that the transition must respect existing contractual and financing arrangements while maintaining investor confidence.

“For this reason, the Committee approved a defined transition period for the operationalisation of direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account.

“Until the Committee issues detailed guidelines, contractors will continue to remit under the current process. During the transition period, the Committee will issue clear, standardised guidance to ensure an orderly changeover,” the statement added.

He further disclosed that the committee approved the establishment of a technical subcommittee to develop detailed transition guidelines within three weeks and to commence a review of the Petroleum Industry Act to address structural and fiscal anomalies affecting federation revenues.

“The Technical Subcommittee will be led by the Special Adviser to the President on Energy, and will include the Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance, representatives of the Minister of State Petroleum Resources, Oil, with secretarial support from the Budget Office of the Federation,” it said.

The minister added that the committee would continue to provide coordinated guidance and timely updates as implementation progresses.

He also commended stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources deliver measurable benefits to citizens across the federation. (PUNCH)

Update news