The Federal Government of Nigeria has officially begun implementing Executive Order 9 of 2026, signed by President Bola Tinubu on February 13, 2026. The order mandates the direct remittance of key oil and gas revenues, including royalty oil, tax oil, profit oil, profit gas, and other government entitlements under Production Sharing Contracts (PSCs), profit-sharing, and risk service contracts straight into the Federation Account for allocation through the Federation Account Allocation Committee (FAAC).
This follows the inaugural meeting of the dedicated Implementation Committee on February 26, 2026. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the commencement in a statement on Monday, March 2, 2026, outlining key resolutions.
Major changes include the immediate stripping of the Nigerian National Petroleum Company Limited (NNPCL)’s authority to deduct 30% management fees and 30% Frontier Exploration Fund (FEF) from profit oil and gas under PSCs. Gas flare penalties previously remitted to the Midstream and Downstream Gas Infrastructure Fund have also been suspended.
To address practical challenges and maintain investor confidence, a transition period has been approved for direct payments by contractors, respecting existing contracts. A Technical Subcommittee will develop transition guidelines and review the Petroleum Industry Act (PIA) to fix structural revenue weaknesses.
The Nigeria Governors’ Forum (NGF) has endorsed the policy, praising it for boosting fiscal transparency, predictability, constitutional alignment, and ensuring more revenues flow to federal, state, and local governments. Analysts estimate full implementation could unlock up to ₦14.57 trillion in additional allocations based on recent projections, helping ease fiscal pressures amid economic challenges.
The move is seen as a key step to plug longstanding leakages, curb wasteful deductions, and prioritize federation-wide benefits from Nigeria’s petroleum resources.
