In a sweeping move to overhaul Nigeria’s oil and gas revenue structure, President Bola Ahmed Tinubu has signed Executive Order 9 of 2026, mandating that all government revenues from production sharing contracts be paid directly into the Federation Account.
The President announced the development in a statement on Thursday, declaring an end to what he described as excessive deductions that have starved the nation’s coffers.
The new directive, officially titled the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026, targets long-standing deductions by the Nigerian National Petroleum Company (NNPC) Limited and other agencies.
Ending Excessive Deductions
“For too long, excessive deductions, overlapping funds, and structural distortions in the oil and gas sector have weakened remittances to the Federation Account,” President Tinubu stated. He emphasized the detrimental impact of these financial leakages on national development, noting, “When revenues meant for federal, state, and local governments are trapped in layers of charges and retention mechanisms, development suffers. That must end. “
What the New Order Mandates
The Order specifically abolishes several fiscal practices that have historically reduced the funds available for distribution among the three tiers of government. According to the President, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing Contracts will now be remitted in full to the Federation Account.
Furthermore, the President’s directive eliminates specific levies previously retained by the national oil company. “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,” Tinubu declared, reinforcing the administration’s stance on fiscal transparency.
Redefining NNPC’s Role
The President framed the reform as a return to constitutional integrity and a move to redefine the role of the national oil company. “NNPC Limited will operate strictly as a commercial enterprise, as intended under law,” he stated. “The era of duplicative deductions and fragmented oversight is over.” He stressed that oil and gas revenues must serve the Nigerian people first, positioning the reform as a cornerstone of fairness and fiscal responsibility.
Next Steps
Looking beyond the immediate fiscal measures, President Tinubu announced a broader review of the legal framework governing the sector. “Our administration will also undertake a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies that weaken national revenue,” he revealed.
To ensure the swift and effective implementation of the order, the President has approved the establishment of an Implementation Committee. This body will oversee the transition to the new remittance structure and ensure coordinated action among relevant ministries and agencies.
A Promise to Nigerians
“We are strengthening our budget. We are acting in the national interest,” Tinubu asserted, linking the reform to broader governance goals such as strengthening national security, investing in education, expanding healthcare, and advancing the energy transition. He concluded his address by reaffirming his campaign promise: “This was my promise to Nigerians when I asked for this job. Nigeria First. “
