FG Initiates Direct Oil Revenue Remittance to FAAC

The Federal Government of Nigeria has commenced the implementation of Executive Order 9 of 2026, which mandates the direct remittance of oil revenues to the Federal Account Allocation Committee (FAAC). Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, disclosed this in a statement following a meeting chaired by President Bola Tinubu.

The order aims to ensure that revenue accruing from petroleum operations is managed in accordance with constitutional provisions, safeguarding funds meant for the three tiers of government. The Nigerian National Petroleum Corporation (NNPC) will immediately cease collecting a 30% management fee and a 30% frontier exploration fund from oil profits.

Additionally, the remittance of gas flare penalties will be suspended. The committee agreed to maintain existing contractual financial arrangements during a transition period until new guidelines are issued.

A technical subcommittee will be established to develop detailed transit guidelines within three weeks, addressing fiscal anomalies affecting federal revenue.