The Federal Government of Nigeria don begin implement Executive Order 9 of 2026 wey require say all oil revenues go dey paid directly into the Federation Account Allocation Committee (FAAC).
The decision follow the first meeting of the implementation committee for the executive order wey happen on February 26, 2026.
Wale Edun, minister of finance and coordinating minister of the economy, confirm the development for statement wey he release on Monday.
FG Order NNPC Stop Certain Deductions
According to Edun, the committee reaffirm directive from Bola Tinubu say revenues wey come from petroleum operations must follow constitutional rules and protect funds wey belong to the federation.
He say under the new order, NNPC Limited must stop immediately the deduction of 30 percent management fee and another 30 percent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts.
The government also suspend the payment of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund.
Transition Period For Contractors
Edun explain say although the new policy require contractors to pay profit oil, royalty oil and tax oil directly into the federation account, the change go happen gradually.
According to am, the implementation committee approve a transition period to allow existing contracts and financing arrangements adjust to the new system while maintaining investor confidence.
For now, contractors go continue to remit funds through the current process until government release detailed guidelines.
Technical Committee Set Up
The finance minister also reveal say government don set up one technical subcommittee to prepare full transition guidelines within three weeks.
The team go include representatives from the presidency, the ministry of justice, the national revenue service and state finance commissioners.
The committee also go review the Petroleum Industry Act to address structural issues wey dey reduce revenue for the federation.
Government say the new policy aim to improve transparency, strengthen public finances and ensure better revenue sharing among federal, state and local governments.
