The Nigerian government has announced that detailed guidelines for the transition to direct remittance of oil revenues into the Federation Account will be ready within three weeks, following the signing of Executive Order 9 by Bola Ahmed Tinubu.
The disclosure was made by Wale Edun, who chairs the Implementation Committee for Executive Order 9 and also serves as Minister of Finance and Coordinating Minister of the Economy. The committee held its first meeting on February 26, 2026, to plan the full implementation of the directive.
Edun explained that the committee reaffirmed the president’s instruction that revenues from petroleum operations must be managed according to constitutional principles, safeguarding federal revenues and supporting fiscal stability across all three tiers of government.
Under the new directive, the Nigeria National Petroleum Corporation (NNPC) Limited will immediately stop collecting the 30 percent management fee and the 30 percent frontier exploration fund deductions from profit oil and gas under Production Sharing Contracts (PSCs). Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended.
The committee also stressed that the transition to direct payments by contractors into the Federation Account will respect existing contractual obligations and financing arrangements to maintain investor confidence. Until detailed guidelines are issued, contractors will continue remitting under the current system.
To ensure a smooth implementation, the committee has set up a Technical Subcommittee tasked with developing the detailed guidelines within three weeks and reviewing the Petroleum Industry Act (PIA) to address structural and fiscal issues that weaken federal revenues.
The subcommittee will be led by the Special Adviser to the President on Energy and will include the Solicitor-General of the Federation, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, and representatives from the Ministry of Petroleum Resources, with secretarial support from the Budget Office of the Federation.
Edun affirmed that the Implementation Committee will continue providing guidance and updates, commending all stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources deliver tangible benefits to citizens.
