Abuja – The Nigerian government has begun implementing Executive Order 09, aimed at safeguarding federal petroleum revenues and strengthening the management of funds generated from oil and gas operations. The move, initiated by President Bola Ahmed Tinubu, seeks to ensure greater fiscal transparency and accountability within the sector.
The Implementation Committee for the Executive Order held its first meeting on February 26, 2026, according to a statement released by the Finance Ministry. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, chairs the committee.
A key directive of the order mandates that all revenues accruing to the Federation from petroleum operations be managed in a manner consistent with constitutional principles, protecting the nation’s income and supporting the financial stability of all levels of government. Specifically, NNPC Limited will immediately cease deducting the 30% management fee and the 30% frontier exploration fund from profit oil and profit gas derived from Production Sharing Contracts (PSCs).
Remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have also been suspended, in direct alignment with the Executive Order. This suspension is intended to consolidate revenue streams and enhance oversight.
The implementation of direct payments by contractors into the Federation Account, as outlined in Section 2, Sub-section 3 of the Executive Order, will be phased in to avoid disruption to existing contractual and financing arrangements and to maintain investor confidence. A transition period has been approved, during which contractors will continue to remit funds under the current system. Detailed guidelines for the new direct payment process are forthcoming.
To facilitate a smooth transition, a Technical Subcommittee has been established. This subcommittee, led by the Special Adviser to the President on Energy, will develop the detailed guidelines for direct remittance within three weeks. It will also initiate a review of the Petroleum Industry Act (PIA) to identify and address structural and fiscal weaknesses that may undermine federal revenues. Members of the subcommittee include the Solicitor-General of the Federation and Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance and representatives from the Minister of State for Petroleum Resources (Oil). The Budget Office of the Federation will provide secretarial support.
The move has garnered support from state governors, who view it as a crucial step towards greater transparency and accountability in the management of Nigeria’s petroleum resources. The Federal Government has approved a transition period for the implementation of direct payments by oil and gas contractors into the Federation Account, a decision taken by the Implementation Committee following its inaugural meeting.
The government’s action signals a broader effort to tighten control over its petroleum revenues, with Minister Edun also indicating a potential review of the PIA. The timing of this review coincides with the initial steps taken to implement Executive Order 9, suggesting a comprehensive approach to strengthening the financial framework governing the oil and gas sector.
