Ogona Anita
President Bola Tinubu has signed an executive order which makes it mandatory for revenues from Nigeria’s oil and gas sector to be paid directly into the federation account.
According to a statement issued by the President on Wednesday via his X account, the order is to address excessive deductions, overlapping funds, and structural distortions in the oil and gas sector, which have weakened remittances to the federation account.
The Order 9 of 2026 is tagged the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026
The order is effective as from February 13, 2026 and has already been gazzetted.
According to him, the aim is to ensure transparency, accountability, and full constitutional compliance in a way that benefits Nigerians.
The President, who also announced the establishment of an implementation committee on the order, promised that his administration will also ensure a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies that weaken national revenue.
The full statement reads:
“Dear Nigerians,
“Effective February 13, 2026, I signed an Executive Order to restore what belongs to the Nigerian people.
“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account. When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end.
“With Order 9 of 2026 (Presidential Executive Order to Safeguard Federation Oil and Gas
Revenues and Provide Regulatory Clarity, 2026), which has now been gazetted, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing and related contracts will now be paid directly into the Federation Account. The additional 30 per cent management fee and the 30 per cent Frontier Exploration deduction will no longer stand in the way of national revenue.
“Our objective is transparency, accountability, and full constitutional compliance.
“Oil and gas revenues must serve the Nigerian people first, and this reform is about fairness and fiscal responsibility.
“As we strengthen national security, invest in education, expand healthcare, stabilise the economy, and advance our energy transition, every legitimate naira due to the Federation must be protected.
“NNPC Limited will operate strictly as a commercial enterprise, as intended under law. The era of duplicative deductions and fragmented oversight is over.
“Our administration will also undertake a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies that weaken national revenue. I have also approved the establishment of an Implementation Committee to oversee and ensure the effective, coordinated implementation of the executive order.
“Nigeria can no longer afford leakage where there should be leadership.
“We are safeguarding the Federation Account.
“We are strengthening our budget.
“We are acting in the national interest.
