Nigeria has begun the implementation of Executive Order 9, aimed at improving the management and safeguarding of petroleum revenues. The Implementation Committee for the order held its first meeting on February 26, 2026, following a directive from President Bola Ahmed Tinubu.
The committee confirmed that all revenues generated from petroleum operations must be managed in accordance with constitutional principles to protect funds accruing to the Federation and maintain fiscal stability across federal, state, and local governments.
According to the new measures, NNPC Limited is required to immediately stop collecting a 30% management fee and a 30% frontier exploration fund deduction from profit oil and profit gas under Production Sharing Contracts. The remittance of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund has also been suspended as directed by the executive order.
Regarding Section 2, Sub-section 3 of the order, which involves direct payments by contractors into the Federation Account, the committee decided that this transition should respect current contractual and financial arrangements to maintain investor confidence. A defined transition period will be in place until detailed guidelines are released. Contractors will continue using existing payment processes during this time. The committee plans to issue standardized guidance for an orderly transition.
To support these changes, a Technical Subcommittee was established. Its tasks include developing detailed guidelines for direct remittance within three weeks and reviewing the Petroleum Industry Act to address structural and fiscal issues affecting federation revenues. This subcommittee will be led by the Special Adviser to the President on Energy and include representatives from various government departments such as justice, revenue service, finance commissioners’ forum, petroleum resources ministry, with secretarial support from the Budget Office.
The committee stated it will provide ongoing updates as implementation progresses. It acknowledged stakeholder cooperation in advancing efforts to ensure Nigeria’s petroleum resources benefit citizens nationwide.