President Bola Ahmed Tinubu has signed and gazetted Executive Order 9 of 2026, a sweeping directive aimed at safeguarding Nigeria’s oil and gas revenues and ensuring greater regulatory clarity in the sector.
The order, titled “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026,” mandates the direct remittance of key oil and gas revenues into the Federation Account. According to the President, the move is designed to eliminate duplicative deductions, curb structural distortions, and enhance transparency and accountability in the management of petroleum revenues.
Key Highlights of the Executive Order
Under the new directive:
All Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under production sharing and related contracts are to be paid directly into the Federation Account. NNPC Limited will no longer retain the additional 30% management fee on profit oil and profit gas revenues meant for the Federation. The 30% profit allocation previously earmarked for the Frontier Exploration Fund is to be transferred to the Federation Account. Gas flare penalty proceeds are to be remitted into the Federation Account, with payments into the Midstream and Downstream Gas Infrastructure Fund suspended. An Implementation Committee has been constituted to oversee coordinated execution of the order.
Addressing Structural Concerns
The Presidency noted that overlapping deductions and retention frameworks under the Petroleum Industry Act (PIA) have significantly reduced net oil revenue inflows to the Federation Account. The Executive Order seeks to eliminate what the government describes as unjustified multiple layers of deductions that divert funds from federal, state, and local governments.
President Tinubu emphasized that oil and gas revenues must serve the Nigerian people first, stressing that the reforms are necessary to strengthen national budgeting, improve fiscal responsibility, and support priority sectors such as security, education, healthcare, and energy transition investments.
Implementation and Oversight
An inter-agency Implementation Committee comprising key ministers and senior government officials has been set up to ensure effective and coordinated enforcement of the directive. The administration also signaled a broader review of the Petroleum Industry Act to address identified fiscal and structural anomalies.
With Executive Order 9 now officially gazetted, the federal government says it is taking decisive steps to protect national revenue, reposition NNPC Limited strictly as a commercial enterprise, and reinforce the integrity of the Federation Account.
The move marks one of the most significant fiscal policy interventions in Nigeria’s oil and gas sector in recent years.
