The federal government says it has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).
The move follows the inaugural meeting of the implementation
committee for the executive order, held on February 26, 2026.
Wale Edun, the minister of finance and coordinating minister
of the economy, announced the development in a statement on Monday, providing
details on resolutions at the meeting.
He said 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.
“For this reason, the Committee approved a defined
transition period for the operationalisation of direct payments by contractors
of profit oil, royalty oil, and tax oil into the Federation Account,” the
minister said.
“Until the Committee issues detailed guidelines, contractors
will continue to remit under the current process. During the transition period,
the Committee will issue clear, standardised guidance to ensure an orderly
changeover.”
He said the committee approved the establishment of a
technical subcommittee to develop detailed transition guidelines within three
weeks, and commence a review of the Petroleum Industry Act (PIA) to address
structural and fiscal anomalies that weaken federation revenues.
“The Technical Subcommittee will be led by the Special
Adviser to the President on Energy, and will include the Solicitor-General of
the Federation and Permanent Secretary Federal Ministry of Justice, the
Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of
Commissioners of Finance, representatives of the Minister of State Petroleum
Resources, Oil, with secretarial support from the Budget Office of the
Federation,” Edun said.
He added that the committee will continue to provide
coordinated guidance and timely updates as implementation progresses,
commending stakeholders for their cooperation in advancing efforts to ensure
that Nigeria’s petroleum resources deliver measurable benefits to citizens
across the federation.
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