President Bola Tinubu has signed Executive Order 9, a sweeping directive aimed at stopping revenue leakages from Nigeria’s oil and gas sector and ensuring that all proceeds flow directly into the Federation Account.
The order targets royalty oil, tax oil, profit oil, and profit gas under production sharing contracts, suspending NNPC’s previous retention of management fees and the Frontier Exploration Fund. Gas flare penalties are also redirected to the Federation Account.
“This must end. Nigeria’s natural resource wealth must serve Nigerians first,” Tinubu said,
highlighting the need for transparency and accountability in revenue collection.
A multi-agency committee led by the Ministries of Finance, Budget & Planning, and Petroleum Resources has been tasked with enforcing the order. Analysts say the move could boost federal revenue inflows, strengthen FAAC allocations, and reshape fiscal planning amid global oil market volatility.
The Executive Order also signals a potential review of the Petroleum Industry Act, aligning statutory frameworks with constitutional entitlements and closing structural gaps that have historically reduced government revenue.