The Federal Government begins implementing Executive Order 09 on oil and gas revenues, directing NNPC Limited to halt certain deductions and mandating reforms to strengthen Federation Account remittances.

The Federal Government has commenced implementation of the Oil and Gas Revenues Executive Order 09, aimed at safeguarding petroleum revenues and strengthening fiscal transparency.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement on Monday, noting that an Implementation Committee had already held its inaugural meeting on February 26, 2026.

According to Edun, the Executive Order was issued by President Bola Ahmed Tinubu to ensure that revenues accruing to the Federation from petroleum operations are handled in line with constitutional provisions and in a manner that protects fiscal stability across the three tiers of government.

CBI News notes that he revealed that a Technical Committee had been set up to ensure compliance with the Order and to oversee the payment of affected revenues into the Federation Account.

The statement explained that, in line with the President’s directive, NNPC Limited is to immediately cease 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.

Additionally, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have been suspended with immediate effect.

On the provision requiring direct payments by contractors into the Federation Account, the committee agreed that implementation must respect existing contractual and financing arrangements to maintain investor confidence.

A defined transition period was therefore approved for the operationalisation of direct remittances of profit oil, royalty oil, and tax oil into the Federation Account. Until detailed guidelines are issued, contractors will continue remitting under the current framework.

To ensure a smooth transition, the Implementation Committee approved the establishment of a Technical Subcommittee. The subcommittee is expected to develop detailed guidelines within three weeks and commence a review of the Petroleum Industry Act to address structural and fiscal issues affecting 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, the Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, and representatives of the Minister of State for Petroleum Resources (Oil), with secretarial support from the Budget Office of the Federation.

The government said the measures are designed to enhance accountability in petroleum revenue management while reinforcing macroeconomic stability.