Further to the endorsement of Executive Order 9 by President Bola Tinubu, the implementation committee, chaired by the Minister of Finance and coordinating Minister for the economy, Mr Wale Edun, has halted with immediate effect all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
In addition, the committee approved the establishment of a technical sub-committee to develop detailed guidelines for the transition to direct remittance within three weeks and to commence a review of the Petroleum Industry Act (PIA) to address structural and fiscal anomalies that weaken federation revenues.
In a press statement signed by Minister Edun, it named Special Adviser to the President on Energy as chair of the technical sub – committee. Other members of the committee include the Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, the Chairman of the Nigeria Revenue Service, and the Chairman of the Forum of Commissioners of Finance, representatives of the Minister of State Petroleum Resources, Oil, with secretarial support from the Budget Office of the Federation.
The Committee is saddled with the responsibility of providing coordinated guidance and timely updates as implementation progresses.
On February 26, 2026, the Implementation Committee for Executive Order 9 of 2026 held its inaugural meeting. This meeting was held in pursuance of Executive Order 9 of 2026, issued by President Bola Ahmed Tinubu, to safeguard Federal revenues and strengthen the management of petroleum revenue flows.
The Committee reaffirmed the President’s directive that revenues accruing to the Federation from petroleum operations must be handled in a manner that upholds constitutional principles, protects revenues accruable to the Federation, and supports the fiscal stability of all three tiers of government.
In line with the President’s directive, NNPC Limited shall cease, with immediate effect, the collection of the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs).
Additionally, 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.
With respect to Section 2, Sub-section 3 of the Executive Order on direct payments by contractors into the Federation Account, the Committee agreed that this transition must be implemented in a manner that respects existing contractual and financing arrangements, and maintains investor confidence.
For this reason, the Committee approved a defined transition period for the operationalisation of direct payments by contractors of profit oil, royalty oil, and tax oil into the Federation Account.
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.
