FG Starts Putting Executive Order 9 into Effect.
In order to protect petroleum revenues and improve the administration of funds owed to the Federation, President Bola Tinubu recently issued Executive Order 9 of 2026, which the Federal Government has begun implementing.
Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, revealed this in a statement on Monday.
The President’s determination to safeguard public finances is reflected in the action, according to Edun, who also serves as Chairman of the Implementation Committee. He further states that the Federation’s petroleum operations revenues must be managed in a way that respects constitutional principles, safeguards the Federation’s accruable revenues, and promotes the fiscal stability of all three levels of government.
As part of the urgent measures, NNPC Limited has been requested to stop collecting the 30% management fee and the 30% frontier exploration fund deductions from oil and gas profits under Production Sharing Contracts (PSCs) with immediate effect.
In accordance with the Executive Order, all gas flare penalty payments to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have also been halted.
Edun clarified that the move to direct contractor payments into the Federation Account would be managed cautiously to prevent upsetting current contracts.
“The Implementation Committee for Executive Order 9 of 2026 held its inaugural meeting on February 26, 2026. In order to protect federal revenues and improve the management of petroleum revenue flows, President Bola Ahmed Tinubu issued Executive Order 9 of 2026, which prompted this meeting,” the document stated.
“The Committee restated the President’s order that revenue from petroleum operations that accrue to the Federation be managed in a way that respects constitutional values, safeguards Federation revenue, and promotes the financial stability of all three levels of government.
“NNPC Limited will immediately stop collecting the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs), per the President’s directive.
“In accordance with the Executive Order, all payments of gas flare penalties to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are also immediately suspended.
“Regarding Section 2, Sub-section 3 of the Executive Order regarding contractors’ direct payments into the Federation Account, the Committee decided that this change must be carried out in a way that upholds investor confidence and respects current financing and contractual agreements. Because of this, the Committee authorized a specific transition period for the operationalization of contractors’ direct payments of profit, royalty, and tax oil into the Federation Account. Contractors will continue to make remittance under the current procedure until the Committee issues comprehensive guidelines. To guarantee a smooth transition, the Committee will provide precise, uniform guidelines during this time.
In order to achieve this, the Committee authorized the creation of a Technical Subcommittee to: (i) create comprehensive guidelines for the shift to direct remittance within three weeks; and (ii) start reviewing the Petroleum Industry Act (PIA) in order to address fiscal and structural irregularities that reduce Federation revenues.
“The Solicitor-General of the Federation and Permanent Secretary Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, representatives of the Minister of State Petroleum Resources, Oil, and secretarial assistance from the Federation’s Budget Office will all be part of the Technical Subcommittee, which will be chaired by the Special Adviser to the President on Energy.
“As implementation moves forward, the Committee will keep up its timely updates and coordinated guidance. It praises the collaboration of all parties involved in furthering the President’s initiatives to guarantee that Nigeria’s petroleum resources provide real, quantifiable advantages to the Federation’s citizens.”
