Federal Government Begins Enforcement of Executive Order on Direct Oil Revenue Payments

The Federal Government has started implementing Executive Order 9 of 2026, which requires that oil revenues be paid directly into the Federation Account Allocation Committee. The decision followed the first meeting of the implementation committee held on February 26, 2026.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the development in a statement issued on Monday. He said the committee reaffirmed the President’s directive that all income from petroleum operations meant for the federation must be managed in line with the constitution. He added that the goal is to protect public revenue and strengthen the financial stability of federal, state and local governments.

According to the statement, NNPC Limited will immediately stop deducting the 30 per cent management fee and the 30 per cent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts. In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have been suspended in line with the new order.

On the section of the order that allows contractors to make payments directly into the federation account, Edun explained that the change would be introduced carefully to avoid disrupting existing agreements and financing arrangements. He said a transition period has been approved before full implementation begins.

During this transition phase, contractors will continue to follow the current payment system until new guidelines are released. The committee plans to issue clear instructions to ensure a smooth changeover. Edun also announced the creation of a technical subcommittee that will prepare detailed transition guidelines within three weeks. The subcommittee will also review aspects of the Petroleum Industry Act to address structural and financial issues that may affect government revenue.

The subcommittee will be led by the Special Adviser to the President on Energy and will include key officials from the Ministry of Justice, the Nigeria Revenue Service, the Forum of Commissioners of Finance and representatives from the Ministry of Petroleum Resources. The Budget Office of the Federation will provide administrative support. The minister said the committee will continue to provide updates as the process moves forward and thanked stakeholders for supporting efforts to ensure that Nigeria’s oil resources benefit citizens across the country.

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