By Bavoriat Clara
President Bola Ahmed Tinubu has signed Executive Order 9 of 2026, directing that all government entitlements from oil and gas production be paid directly into the Federation Account, in a move aimed at boosting transparency and strengthening public finances.
The President, in a message to Nigerians, said the order, which took effect on February 13, 2026, seeks to address longstanding concerns over excessive deductions, overlapping funds, and structural distortions within the oil and gas sector that have reduced revenues accruing to the Federation Account.
According to him, revenues meant for the federal, state, and local governments have for years been subjected to multiple charges and retention structures, slowing development and eroding public trust.
Under the new directive, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing Contracts and related agreements will be remitted directly to the Federation Account.
The President also announced the discontinuation of the additional 30 percent management fee and the 30 percent Frontier Exploration deduction, stating that such deductions would no longer stand between Nigeria and its lawful revenues.
Describing the move as a step toward full constitutional compliance, he said the reform is intended to promote transparency, accountability, and proper fiscal management.
He added that as the government continues to strengthen security, invest in education, expand healthcare services, stabilise the economy, and advance Nigeria’s energy transition agenda, all legitimate revenues due to the Federation must be safeguarded.
The President further stated that Nigerian National Petroleum Company Limited will operate strictly as a commercial enterprise in line with the law, stressing that the era of duplicative deductions and fragmented oversight is over.
In addition, he announced plans for a comprehensive review of the Petroleum Industry Act to address identified structural and fiscal anomalies. He also approved the establishment of an Implementation Committee to ensure coordinated and effective execution of the Executive Order.
The President said the action reflects his administration’s commitment to safeguarding the Federation Account, strengthening the national budget, and acting in the overall national interest.
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