EXECUTIVE ORDER DIRECT REMITTANDE OIL REVENUE

What Is This Policy?

Executive Order 9 (EO9) is a presidential directive signed by President Bola Tinubu on February 13, 2026, requiring NNPC Limited to remit all oil and gas revenues directly to the Federation Account without retaining management fees, frontier exploration fund deductions, or other charges previously deducted under the Petroleum Industry Act 2021. It is designed to restore constitutional revenue entitlements to all three tiers of government and eliminate fiscal leakages from the upstream oil and gas sector.

Who Does It Target?

NNPC Limited, which previously deducted a 30% management fee and 30% Frontier Exploration Fund from profit oil and gas before remitting to the Federation Account Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which must now redirect gas flaring penalty revenues to the Federation Account Federal, state, and local governments as the constitutional beneficiaries of Federation Account distributions through FAAC Investors and industry analysts evaluating the fiscal and commercial implications for NNPCL and upstream joint venture operations

What Does It Aim to Achieve?

Restore 100% of profit oil and gas revenues to the Federation Account, increasing the monthly FAAC pool available to all three tiers of government Eliminate the 30% management fee that NNPCL previously deducted from production sharing and risk service contract revenues Abolish the separate Frontier Exploration Fund account and transfer the 30% previously ring-fenced for speculative exploration into the Federation Account Redirect gas flaring penalty revenues from the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to the Federation Account

Key Features

Management Fee Abolition: NNPCL's 30% management fee on profit oil and gas from production sharing, profit sharing, and risk service contracts is abolished with immediate effect Frontier Exploration Fund Transfer: The 30% of profit oil and gas previously retained as the Frontier Exploration Fund under PIA Sections 9(4) and 9(5) is now paid directly into the Federation Account Gas Flaring Penalty Redirect: NUPRC must pay all gas flaring penalty proceeds directly into the Federation Account instead of the MDGIF; MDGIF expenditure subject to public procurement laws Implementation Committee: A presidential implementation committee monitors execution, chaired by the Minister of Finance, with AGF, Budget Minister, and NNPCL oversight Constitutional Anchoring: EO9 is anchored on Sections 5 and 44(3) of the Constitution, which vest all mineral resources in the Federal Government on behalf of the Federation PIA Review: President Tinubu has announced a comprehensive review of the PIA's fiscal provisions in consultation with stakeholders to address identified structural anomalies

Current Status

Rollout Stage: Active; implementation commenced February 13, 2026; NNPCL transitioning to direct remittance model; industry and financial markets monitoring the transition closely Implementing Bodies: NNPCL; NUPRC; CBN (Federation Account); FIRS; Office of the AGF; Budget Office of the Federation Industry Response: Some energy analysts raised concerns about NNPCL's operational cash flow; PETROAN and civil society broadly supportive of the transparency objective Fiscal Impact: Early projections indicate monthly FAAC disbursements could increase by 15 to 25%, providing additional revenue to states and LGAs for essential services

How to Access

Government Agencies: Download the gazetted EO9 text from the Federal Ministry of Justice and the NNPCL Board Secretariat for compliance guidance Industry Operators: Contact NUPRC and NNPCL for updated remittance schedules, measurement verification procedures, and joint venture cost reconciliation frameworks States and LGAs: Monitor FAAC communiques for updated allocation projections; engage RMAFC for revenue distribution analysis Contact: State House: statehouse.gov.ng | NUPRC: nuprc.gov.ng | NNPCL: nnpcgroup.com

Important Terms

NNPCL Retained Earnings: NNPCL retains 20% of profit oil and gas as its own commercial earnings; EO9 abolishes the additional 30% management fee on top of this, not the 20% base retention PIA Review: EO9 does not fully repeal the PIA; targeted fiscal provisions are suspended pending a broader PIA review; the PIA's structural and governance frameworks remain in force

Official Resources

Website: statehouse.gov.ng | nuprc.gov.ng | nnpcgroup.com Contact: State House, Abuja | NUPRC, 7 Kofo Abayomi Street, Victoria Island, Lagos Policy Summary | Source: State House Nigeria, TheCable Nigeria, Vanguard, The Nation, BusinessAM, CNBC Africa | February 2026

Legal Framework

Executive Order 9 on Direct Remittance of Oil Revenue (2026) is issued under the President's executive powers under Section 5 of the 1999 Constitution. It operates under the Petroleum Industry Act 2021 (which governs NNPC Limited's finances), the Revenue Mobilisation Allocation and Fiscal Commission Act, the Fiscal Responsibility Act 2007, and the Finance (Control and Management) Act. The Order aligns with constitutional provisions on the Federation Account (Section 162) and the Auditor-General's constitutional oversight mandate.