The federal government has begun the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).
Minister of finance and coordinating minister of the economy, Wale Edun, disclosed this in a statement on Monday.
The move follows the inaugural meeting of the implementation committee for the executive order, held on February 26, 2026.
According to Edun, the committee reaffirmed the president’s directive that revenues accruing to the federation from petroleum operations must be handled in a manner that upholds constitutional principles, protects revenues accruable to the federation, and supports the fiscal stability of the three tiers of government.
“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 reads.
“Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in line with the Executive Order.”
On Section 2(3) of the order, which provides for direct payments by contractors into the federation account, Edun said the committee agreed that the transition must be implemented in a manner that respects existing contractual and financing arrangements, and maintains investor confidence.
