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FG commences implementation of Executive Order 9 (2026) mandating direct oil revenue remittance to FAAC.
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NNPC to stop 30% deductions for management fee and frontier exploration fund.
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Technical subcommittee set up to issue transition guidelines within three weeks.
The Federal Government has begun implementing Executive Order 9 of 2026, directing the direct remittance of oil revenues into the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Monday following the inaugural meeting of the implementation committee set up on the directive of President Bola Tinubu.
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According to Edun, the committee reaffirmed the President’s position that all petroleum revenues due to the federation must be managed in line with constitutional provisions to protect allocations meant for the three tiers of government.
He announced that NNPC Limited will immediately cease the deduction of 30 per cent management fees and 30 per cent frontier exploration funds from profit oil and profit gas under Production Sharing Contracts.
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The committee also suspended remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, in compliance with the executive order.
However, regarding Section 2(3) of the order which mandates direct payments by contractors into the federation account, Edun said a transition period has been approved to respect existing contractual and financing arrangements and maintain investor confidence.
Contractors will continue under the current remittance process pending the issuance of detailed guidelines.
A technical subcommittee, led by the Special Adviser to the President on Energy, has been established to develop transition guidelines within three weeks and to commence a review of the Petroleum Industry Act to address structural and fiscal anomalies affecting federation revenues.
Edun assured that the committee would provide coordinated guidance and updates as implementation progresses, while commending stakeholders for supporting reforms aimed at ensuring Nigeria’s petroleum resources deliver measurable benefits to citizens.