EXECUTIVE ORDER: FG INITIATES DIRECT TRANSFER OF OIL REVENUES TO FAAC
Read Time:2 Minute, 11 Second
BY:TAJUDEEN AMINAT
The Federal Government has begun implementing Executive Order 9 of 2026, which requires the direct transfer of oil revenues to the Federation Account Allocation Committee (FAAC).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this in a statement on Monday, outlining key decisions made during the meeting.
The move follows President Bola Tinubu’s directive regarding the remittance to FAAC and the inaugural session of the committee tasked with implementing the executive order.
Edun emphasized that the committee reiterated the President’s instruction that all federal revenues from petroleum operations must be managed according to constitutional provisions and in a manner that protects funds intended for all three tiers of government.
Following the President’s directive, 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.
The statement added: “All remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are also suspended with immediate effect, in accordance with the Executive Order.”
Regarding Section 2(3) of the order, which mandates direct payments by contractors into the federation account, the minister noted that the committee agreed the transition must honor existing contractual and financing arrangements while ensuring investor confidence is maintained.
The committee approved a structured transition period for the implementation of direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account.
“Until detailed guidelines are issued by the committee, contractors will continue to remit under the existing process. During the transition, the committee will provide clear and standardized instructions to ensure an orderly handover,” the statement said.
It was further revealed that the committee authorized the creation of a technical subcommittee tasked with developing detailed transition guidelines within three weeks, as well as reviewing the Petroleum Industry Act to address structural and fiscal issues affecting federation revenues.
“The Technical Subcommittee will be chaired by the Special Adviser to the President on Energy and will 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, representatives of the Minister of State for Petroleum Resources, and will receive secretarial support from the Budget Office of the Federation,” the statement added.
The minister noted that the committee will continue to provide coordinated guidance and timely updates as implementation moves forward, and he commended stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources generate tangible benefits for citizens nationwide.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0