Abuja, February 26, 2026
The Federal Government has begun enforcing new measures aimed at tightening oversight of petroleum revenues, following the first meeting of the Implementation Committee for Executive Order 9 of 2026.
The committee, set up by President Bola Ahmed Tinubu, met in Abuja to outline steps for protecting funds due to the Federation and improving transparency in oil and gas revenue management. Officials said the objective is to ensure that earnings from petroleum operations are handled in line with constitutional provisions and support fiscal stability across federal, state and local governments.
As part of the immediate changes, NNPC Limited has been directed to stop collecting 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. In addition, remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund have been suspended.
The committee also reviewed provisions requiring contractors to pay profit oil, royalty oil and tax oil directly into the Federation Account. It agreed that the shift must take into account existing contractual obligations and financing structures to avoid disrupting investor confidence. A transition period has therefore been approved. Contractors will continue remitting under the current framework until detailed operational guidelines are issued.
To manage the transition, a Technical Subcommittee has been established. It will prepare comprehensive guidelines for direct remittances within three weeks. The subcommittee will also begin a review of the Petroleum Industry Act to address structural and fiscal gaps that may reduce revenues available to the Federation.
The Technical Subcommittee will be chaired by the Special Adviser to the President on Energy. Members include the Solicitor General of the Federation and 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. The Budget Office of the Federation will provide secretarial support.
The committee said it will continue to issue updates as implementation progresses and expressed appreciation to stakeholders for their cooperation. Finance Minister Wale Edun, who chairs the Implementation Committee, signed the statement.
