Executive Order 9 of 2026, which requires that oil income be sent directly to the Federation Account Allocation Committee, has been put into effect by the Federal Government. In a statement released on Monday, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed this information and listed the main decisions made during the meeting. This came after the first meeting of the executive order's implementation committee and President Bola Tinubu's directive about the remittance to FAAC.
According to Edun, the committee reiterated the President's order that the federation's petroleum income be administered in accordance with constitutional rules and in a manner that protects money intended for the three levels of government.
"NNPC Limited will immediately stop collecting the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts in accordance with the President's direction.
The statement said, "In accordance with the Executive Order, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect."
Regarding Section 2(3) of the order, which allows contractors to make direct payments into the federation account, the minister stated that the committee decided that the transition must uphold investor trust while respecting current finance and contractual arrangements.
In order to operationalize contractors' direct payments of profit oil, royalty oil, and tax oil into the Federation Account, the Committee authorized a certain transition period.
"Contractors will continue to submit under the current procedure until the Committee releases comprehensive instructions. To guarantee a smooth transition, the Committee will provide precise, uniform guidelines at this time," the statement continued.
He further revealed that the committee approved the creation of a technical subcommittee to evaluate the Petroleum Industry Act in order to address structural and fiscal abnormalities that influence federation income, as well as to develop comprehensive transition instructions within three weeks.
"The Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, representatives of the Minister of State Petroleum Resources, Oil, and secretarial support from the Budget Office of the Federation will be part of the Technical Subcommittee, which will be led by the Special Adviser to the President on Energy," the statement stated.
As implementation moves forward, the committee will continue to offer regular updates and coordinated guidance, the minister stated.
In order to guarantee that Nigeria's petroleum resources provide quantifiable advantages to the people of the nation, he also praised stakeholders for their collaboration.