FG Begins Direct Remittance of Oil Revenues to FAAC – Edun
The Federal Government has officially launched the implementation of Executive Order 9 of 2026, mandating the direct remittance of all oil revenues into the Federation Account Allocation Committee (FAAC).
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the move following the committee’s inaugural meeting, signaling a major shift in how petroleum-derived funds are managed.
This policy aligns with President Bola Tinubu’s directive to ensure that national revenues strictly follow constitutional provisions, ultimately safeguarding the funds earmarked for the three tiers of government. The move aims to streamline revenue collection and increase fiscal transparency across the energy sector.
A significant change under this order involves the NNPC Limited. According to the Minister, “NNPC Limited shall cease, with immediate effect, the collection of 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.”
Additionally, the government is halting specific diversions of revenue to other funds. Edun noted, “All remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect, in line with the Executive Order.”
While the order mandates direct payments into the federation account, the government is mindful of potential market disruptions. To maintain investor confidence, the committee has approved a defined transition period for contractors to adjust their payment processes for profit oil, royalty oil, and tax oil.
Regarding this transition, the Minister stated, “Until the Committee issues detailed guidelines, contractors will continue to remit under the current process. During the transition period, the Committee will issue clear, standardised guidance to ensure an orderly changeover.”
To oversee this shift, a technical subcommittee has been established, led by the Special Adviser to the President on Energy.
This group has been tasked with developing comprehensive transition guidelines within three weeks and reviewing the Petroleum Industry Act to resolve ongoing fiscal anomalies.
Edun reaffirmed the government’s commitment to transparency, promising regular updates as the implementation progresses. The overarching goal remains ensuring that Nigeria’s petroleum resources deliver tangible, measurable benefits to citizens across every state in the federation.