Nigeria Moves to Safeguard Petroleum Revenues with Executive Order 9 Implementation

The Nigerian government has initiated the implementation of Executive Order 9 of 2026. The inaugural meeting of the Implementation Committee for Executive Order 9 took place on February 26, 2026, marking a significant step in the country’s ongoing efforts to bolster fiscal stability.
Issued by President Bola Ahmed Tinubu, Executive Order 9 targets critical measures to secure the country’s petroleum revenues. Among the immediate actions under this Executive Order is the cessation of the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under the Production Sharing Contracts (PSCs). These actions are designed to reduce fiscal leakage and ensure a more robust financial system.
Additionally, in a related move, the government has suspended all remittances of gas-flare penalties to the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This suspension also takes effect immediately, in line with the Executive Order, further streamlining revenue flows and reducing unnecessary fiscal burdens.
A key element of the order focuses on direct payments by contractors into the Federation Account. The Committee emphasised that the transition to this payment structure must respect existing contractual and financing arrangements while maintaining investor confidence. To ensure a smooth shift, a defined transition period has been approved for the implementation of direct payments by contractors, including those for-profit oil, royalty oil, and tax oil. Until comprehensive guidelines are provided, contractors will continue to remit payments according to the current process. During the transition phase, the Committee will issue clear, standardised guidance to ensure an orderly changeover.
In furtherance of this initiative, the Committee has established a Technical Subcommittee to provide expert advice and support the operationalisation of these measures. The Subcommittee will play a pivotal role in developing the necessary frameworks to operationalise the direct payment system while ensuring alignment with the broader goals of the Executive Order.
Reaffirming the directive of President Tinubu, the Committee stressed that petroleum revenues accruing to the Federation must be handled with the utmost care, in accordance with constitutional principles. The goal is to protect the nation’s petroleum revenue, safeguard the federal government’s interests, and maintain fiscal stability across all three levels of government.
As Nigeria moves to implement these changes, the Committee’s actions will have far-reaching implications for the country’s economic stability and its management of valuable petroleum resources. The swift and effective execution of Executive Order 9 represents a critical moment in Nigeria’s ongoing efforts to refine its revenue management strategies and secure its fiscal future.

Ojelade Oluwamayowa

+ posts

Nigeria Moves to Safeguard Petroleum Revenues with Executive Order 9 Implementation

Saudi Aramco Halts Operations at Ras Tanura Refinery After Reported Drone Strike

GODMADE HOMES LIMITED RECORDS ₦3.70 BILLION SUBSCRIPTION ON SERIES 1 COMMERCIAL PAPER ISSUANCE

Leave a Reply Cancel reply

Stay Connected

Recent News