FG Revises Oil Revenue Remittance Framework in Nigeria

The Federal Government of Nigeria has made adjustments to its oil revenue remittance framework as outlined in Executive Order 9, which will take effect on February 13, 2026. This revision follows high-level deliberations and aims to ensure that oil-related revenues, including royalties and taxes, are directly remitted to the federal account.

President Bola Tinubu issued the executive order to scrap the 30% frontier exploration fund and modify the management fee structure for profit oil. The new framework intends to safeguard oil revenue and strengthen remittances to the federal account, invoking Section 5 of the Constitution of the Federal Republic of Nigeria.

The Nigerian National Petroleum Company (NNPC) will continue to commercialize crude oil and remit proceeds to the federal account, with the Central Bank of Nigeria overseeing the new accounts. The changes are designed to address the complexities and challenges of the previous remittance structure while ensuring that revenues are not trapped in overlapping fund structures.