Nigeria bolsters petroleum revenue safeguards as Executive Order 9 takes effect
Finance Minister and Coordinating Minister of the Economy Wale Edun
Abdullateef Fowewe
The Nigerian government has launched implementation of Executive Order 9, aiming to protect federal petroleum revenues and enhance fiscal stability across all government tiers, according to a statement obtained from the Ministry of Finance on Monday.
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The Implementation Committee, chaired by Finance Minister Wale Edun, held its inaugural meeting on February 26 in line with President Bola Tinubu’s directive.
The order targets inefficiencies in revenue management from petroleum operations.
Key measures include halting NNPC Limited’s collection of the 30% management fee and 30% frontier exploration fund from profit oil and gas under Production Sharing Contracts (PSCs).
The statement noted, “NNPC Limited shall cease, with immediate effect, the collection of the 30% management fee and the 30% frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts (PSCs).
Additionally, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF) are suspended with immediate effect.”
On direct payments by contractors into the Federation Account, the committee approved a phased transition to respect existing contracts and investor confidence.
“Until the Committee issues detailed guidelines, contractors will continue to remit under the current process,” the statement read.
A Technical Subcommittee, led by the Special Adviser to the President on Energy, will develop guidelines within three weeks and review the Petroleum Industry Act (PIA) for fiscal fixes.
The committee praised stakeholder cooperation, stating it “commends the cooperation of all stakeholders in advancing the President’s efforts to ensure that Nigeria’s petroleum resources deliver tangible, measurable benefits to citizens across the Federation.”
