MON MAR 02 2026-theGBJournal| The Federal Government has officially commenced the implementation of Executive Order 9 of 2026, a decisive fiscal reform aimed at restoring constitutional order to the management of Nigeria’s petroleum wealth.
Following the inaugural meeting of the implementation committee chaired by the Minister of Finance, Wale Edun, the government directed the immediate cessation of several “at-source” deductions that have historically thinned the Federation Account.
Most notably, the NNPC Limited has been ordered to stop collecting the 30% management fee and the 30% frontier exploration fund from profit oil and gas, effectively redirecting these billions back toward the three tiers of government.
This move marks a significant shift from the framework established by the Petroleum Industry Act (PIA) of 2021, which the presidency argues inadvertently allowed for unconstitutional revenue retentions.
Under the new directive, all petroleum-related earnings—including royalty oil, tax oil, and gas flare penalties—must now flow directly into the Federation Account.
While the transition for direct contractor payments will include a brief “orderly changeover” period to protect investor confidence and existing contracts, a technical subcommittee has been given a three-week deadline to finalize the guidelines that will seal these long-standing fiscal gaps.
Meanwhile, the Committee approved the establishment of a Technical Subcommittee to develop 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, 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.
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