- Safiu Kehinde
The Implementation Committee for the Executive Order 9 of 2026 issued by President Bola Tinubu has commenced implementation of the President’s directive on direct remittance of oil and gas revenue to the Federation account.
NPO Reported that Tinubu had last month gave the order in said effort to safeguard Federal revenues and strengthen the management of petroleum revenue flows.
The President had in the directive barred the Nigerian National Petroleum Company (NNPC) Limited from 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).
He also declared that the NNPC Limited will no longer be entitled to the 30% management fee on profit oil and profit gas revenues, which should go to the federation account.
In pursuance, the implementation committee held its inaugural meeting on the 26th of February.
The resolution of the meeting would however be disclosed in a statement issued on Monday by the Minister of Finance, Wale Edun.
As contained in the statement, Edun disclosed that 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 all three tiers of government.
In line with the President’s directive, the committee reiterated that the 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).
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.
With respect to Section 2, Sub-section 3 of the Executive Order on direct payments by contractors into the Federation Account, the committee agreed that this transition must be implemented in a manner that respects existing contractual and financing arrangements and maintains investor confidence.
It 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.
Meanwhile, contractors are to continue remittance under the current process pending the time committee issues detailed guidelines,
During the transition period, the Committee vows to issue clear, standardised guidance to ensure an orderly changeover.
It however approved the establishment of a Technical Subcommittee with the aim of developing the detailed guidelines for the transition to direct remittance 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.
Other members include 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.
The Committee will continue to provide coordinated guidance and timely updates as implementation progresses.
It commends the cooperation of all stakeholders in advancing the President’s efforts to ensure that Nigeria’s petroleum resources deliver tangible, measurable benefits to citizens across the Federation.