FG
Federal Ministry of Finance has announced the commencement of the implementation of Executive Order 9 of 2026, aimed at strengthening transparency and safeguarding Nigeria’s petroleum revenues.
In a press statement issued in Abuja, the ministry disclosed that the Implementation Committee for the executive order held its inaugural meeting on February 26, 2026, in line with the directive of President Bola Ahmed Tinubu.
The meeting, according to the statement, was convened to ensure that revenues from petroleum operations are properly managed in accordance with constitutional provisions and in a manner that promotes fiscal stability across the federal, state, and local government levels.
As part of the new measures, the committee directed NNPC Limited to immediately stop the collection of specific deductions under Production Sharing Contracts (PSCs).
“In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs),” the statement said.
It also announced the suspension of all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
The committee further addressed provisions in the executive order relating to direct payments by contractors into the Federation Account.
According to the ministry, the transition to direct remittance of profit oil, royalty oil, and tax oil will be implemented carefully to protect existing contractual agreements and sustain investor confidence.
“For this reason, the Committee approved a defined transition period for the operationalisation of direct payments by contractors,” the statement noted.
It added that contractors would continue to remit revenues through the current system until detailed guidelines are released.
“Until the Committee issues detailed guidelines, contractors will continue to remit under the current process,” the ministry stated.
During the transition period, the committee said it would provide “clear, standardised guidance to ensure an orderly changeover.”
To drive the reform process, the committee approved the creation of a Technical Subcommittee tasked with developing implementation guidelines and reviewing relevant legal frameworks.
The subcommittee is expected to:
1. Develop detailed guidelines for the transition to direct remittance within three weeks.
2. Review the Petroleum Industry Act to address “structural and fiscal anomalies that weaken Federation revenues.”
The team will be led by the Special Adviser to the President on Energy and includes senior officials from the justice sector, revenue agencies, and finance commissioners, with support from the Budget Office of the Federation.
The ministry said the committee would continue to provide regular updates as implementation progresses and praised stakeholders for their cooperation.
It noted that the reforms are designed to ensure that Nigeria’s petroleum resources translate into “tangible, measurable benefits” for citizens across the country.