FG begins direct remittance of oil revenues to FAAC

The Federal Government has commenced the implementation of Executive Order 9 of 2026, mandating the direct remittance of oil revenues to the Federation Account Allocation Committee (FAAC).

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement on Monday following the inaugural meeting of the implementation committee set up to enforce the order. The move follows a directive by President Bola Tinubu.

Edun said the committee reaffirmed the President’s instruction that all petroleum revenues accruing to the federation must be managed in accordance with constitutional provisions and in a manner that protects allocations due to the three tiers of government.

Under the directive, NNPC Limited will immediately stop deducting the 30 per cent management fee and the 30 per cent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts.

The government also suspended, with immediate effect, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), in line with the executive order.

Regarding Section 2(3) of the order, which provides for direct payments by contractors into the federation account, Edun said the committee agreed that the transition must take into account existing contractual and financing arrangements to sustain investor confidence.

He explained that a defined transition period had been approved for contractors to begin direct payments of profit oil, royalty oil, and tax oil into the Federation Account. Until detailed guidelines are issued, contractors will continue remittances under the current process.

To facilitate the transition, the committee approved the establishment of a technical subcommittee tasked with developing comprehensive guidelines within three weeks. The panel will also begin a review of the Petroleum Industry Act to address structural and fiscal issues affecting 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, the 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), with secretarial support from the Budget Office of the Federation.

Edun said the committee would continue to provide coordinated guidance and timely updates as implementation progresses, commending stakeholders for their cooperation in ensuring that Nigeria’s petroleum resources translate into tangible benefits for citizens across the country.