FAAC Receives 100% PSC Revenue Under Executive Order 9

The Federal Account Allocation Committee (FAAC) has started receiving 100% of the profit share from Production Sharing Contracts (PSC) following the implementation of Executive Order 9 by President Bola Ahmed Tinubu. This shift, effective February 2026, marks a significant change in the revenue-sharing structure within Nigeria's oil and gas sector.

The new fiscal report indicates that the full compliance with Executive Order 9 will replace the previous arrangement under the Petroleum Industry Act (PIA), which utilized a 30-30-40 formula for revenue distribution. This change is expected to enhance fiscal transparency and increase government revenue at a time when state governments are facing rising debt obligations and increased spending pressures.

Additionally, the Executive Order has led to the suspension of payments for gas flare penalties and clarified regulatory responsibilities within the Nigerian upstream and midstream petroleum sectors.