President Bola Ahmed Tinubu has signed a new Executive Order aimed at restoring and safeguarding oil and gas revenues for the Nigerian people, declaring an end to excessive deductions and structural distortions that have weakened remittances to the Federation Account over the years.
The directive, known as Order 9 of 2026 (Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026), took effect from February 13, 2026, and has been officially gazetted. Under the new order, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing and related contracts will now be paid directly into the Federation Account.
According to the President, the reform is designed to eliminate long-standing financial leakages caused by overlapping funds, retention mechanisms, and multiple deductions within the oil and gas sector that have significantly reduced the funds available to federal, state, and local governments.
Tinubu emphasized that the additional 30 percent management fee and the 30 percent Frontier Exploration deduction will no longer obstruct national revenue flows, noting that revenues meant for development had been trapped in layers of charges that hindered economic progress.
“Our objective is transparency, accountability, and full constitutional compliance. Oil and gas revenues must serve the Nigerian people first, and this reform is about fairness and fiscal responsibility,” the President stated.
He further explained that the policy aligns with the administration’s broader goals of strengthening national security, investing in education, expanding healthcare, stabilising the economy, and advancing Nigeria’s energy transition. The President stressed that every legitimate naira due to the Federation must be protected to support national development.
The Executive Order also clarifies the operational role of the Nigerian National Petroleum Company (NNPC) Limited, directing it to function strictly as a commercial enterprise in line with existing laws, while ending what the President described as duplicative deductions and fragmented oversight.
In addition, the administration will undertake a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies that weaken national revenue generation. To ensure effective execution, Tinubu approved the establishment of an Implementation Committee to oversee the coordinated enforcement of the new policy.
Reaffirming his commitment to fiscal discipline and national interest, the President declared that Nigeria can no longer afford revenue leakages, stating that the reform will strengthen the Federation Account, improve budget performance, and reinforce accountability in the oil and gas sector.
“This was my promise to Nigerians. We are safeguarding the Federation Account, strengthening our budget, and acting in the national interest. Nigeria First,” the President concluded.
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