The Federal Government has commenced the implementation of Executive Order 9 of 2026, ordering the immediate suspension of key revenue deductions by the Nigerian National Petroleum Company Limited (NNPC Ltd) in a sweeping move to safeguard petroleum revenues due to the Federation.
The Implementation Committee for Executive Order 9 held its inaugural meeting on February 26 in Abuja, reaffirming President Bola Ahmed Tinubu’s directive that revenues from petroleum operations must be handled in strict compliance with constitutional provisions and in a manner that protects the fiscal stability of the three tiers of government.
“The President has been clear that revenues accruing to the Federation from petroleum operations must be managed in a way that upholds constitutional principles and safeguards what rightly belongs to the Nigerian people,” the committee stated.
Under the directive, NNPC Ltd is to cease, with immediate effect, the collection of the 30 per cent management fee and the 30 per cent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs). The government also suspended all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
“This measure is intended to strengthen transparency, plug revenue leakages and ensure that Federation revenues are not diminished by deductions inconsistent with existing constitutional and fiscal provisions,” the committee added.
On the provision requiring contractors to make direct payments of profit oil, royalty oil and tax oil into the Federation Account, the committee approved a defined transition period to allow for an orderly implementation.
“With respect to direct remittances, the transition will be handled in a manner that respects existing contractual and financing arrangements and maintains investor confidence, Until detailed guidelines are issued, contractors will continue to remit under the current process,” the committee said
To facilitate the process, the committee approved the establishment of a Technical Subcommittee mandated to develop detailed guidelines for the transition within three weeks and to commence a review of the Petroleum Industry Act (PIA) to address structural and fiscal anomalies affecting Federation revenues.
Chairman of the Implementation Committee and Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, commended stakeholders for their cooperation.
“This reform is about ensuring that Nigeria’s petroleum resources deliver tangible and measurable benefits to citizens across the Federation,We will continue to provide coordinated guidance and timely updates as implementation progresses.” Edun said.
The Technical Subcommittee, led by the Special Adviser to the President on Energy, includes the Solicitor-General of the Federation, the Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance, among others.
The committee reaffirmed its commitment to ensuring that the implementation of Executive Order 9 strengthens revenue management and supports long-term fiscal stability.