Guidelines for Direct Oil Revenue Remittance Under Executive Order 9 Set to Be Finalized in Three Weeks

The implementation committee for Executive Order 9, recently enacted by President Bola Tinubu, plans to have detailed guidelines for transitioning to direct oil revenue remittances into the Federation Account finalized within three weeks.

During the committee's inaugural meeting on February 26, 2026, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, announced this timeline. He affirmed that the goal is to adhere to constitutional mandates while safeguarding Federation revenues and ensuring fiscal stability across all governmental tiers.

In a signed statement, Edun explained, "On February 26, 2026, the Implementation Committee for Executive Order 9 convened for its inaugural session. This meeting was conducted to support Executive Order 9, intended to protect federal revenues and enhance the oversight of petroleum revenue streams."

He reiterated the President’s instruction that petroleum revenue must be managed to uphold constitutional standards and to protect revenue distributions while fostering fiscal stability for local, state, and federal governments.

Furthermore, Edun stated, "In accordance with the President's directive, NNPC Limited will immediately discontinue the collection of the 30 percent management fee and the 30 percent frontier exploration fund deductions from profit oil and gas generated from Production Sharing Contracts (PSCs). Additionally, all penalties associated with gas flaring deposited into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are to be suspended immediately as per the Executive Order."

He outlined that the committee agreed that the shift to direct payments into the Federation Account, as specified in Section 2, Sub-section 3 of the Executive Order, must be rolled out carefully to respect existing contractual obligations and financing agreements, which is vital for maintaining investor confidence. This includes establishing a clear transition timeline for the direct remittance of profit oil, royalty oil, and tax oil.

Until formal guidelines are published, contractors will retain the current remittance system. Throughout this transition, the committee will provide clear and standardized procedures to facilitate an orderly shift.

In this regard, Edun mentioned that the formation of a Technical Subcommittee was approved, responsible for formulating the specific guidelines for the shift to direct remittance within three weeks and for reviewing the Petroleum Industry Act (PIA) to address structural and fiscal inconsistencies that undermine Federation revenues.

The Technical Subcommittee will be chaired by the Special Adviser to the President on Energy, with additional members including the Solicitor-General of the Federation, the Permanent Secretary of the Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and other representatives. The Budget Office of the Federation will provide secretarial assistance.

Edun concluded by emphasizing the committee's commitment to delivering coordinated guidance and timely updates as the implementation process unfolds, and he commended the collaborative efforts of all stakeholders toward maximizing the benefits of Nigeria’s oil wealth for the citizens.