President President Bola Tinubu has issued a fresh directive aimed at strengthening the management and remittance of oil and gas revenues to the Federation Account, as part of ongoing efforts to enhance transparency, accountability and fiscal discipline in Nigeria’s extractive sector.
The directive is contained in Executive Order 9 of 2026, officially titled “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026,” which seeks to eliminate revenue leakages and clarify remittance obligations across the oil and gas value chain.
According to the Presidency, the Executive Order mandates that all revenues accruing to the Federation from crude oil and natural gas production be paid directly into the Federation Account in line with constitutional provisions.
The order is designed to ensure that earnings due to the Federal, State and Local Governments are fully accounted for before any deductions, expenditures or intervention funding arrangements are applied.
Focus on Revenue Protection
Officials familiar with the policy said the directive responds to concerns over declining distributable revenues caused by multiple deductions and retention practices that have reduced net inflows to the Federation Account in recent years.
They explained that by streamlining revenue collection and remittance procedures, the Federal Government intends to safeguard public funds and improve the predictability of statutory allocations shared monthly by the three tiers of government.
The directive also reinforces the principle that Nigeria’s oil and gas resources are jointly owned by the federation and must be managed in a manner that reflects fairness and constitutional compliance.
Regulatory Clarity
In addition to revenue protection, the Executive Order provides regulatory clarity by clearly defining the roles and obligations of institutions involved in oil and gas revenue administration.
Analysts say this clarification is expected to reduce overlaps, disputes and administrative bottlenecks that have previously affected efficient revenue management in the sector.
The Presidency noted that a more transparent and predictable framework would strengthen investor confidence and improve governance outcomes in the industry.
Implementation Measures
To ensure effective implementation, relevant fiscal and regulatory authorities have been directed to align their procedures with the provisions of the Executive Order.
An implementation framework has also been put in place to monitor compliance, resolve operational issues and provide regular feedback to the Presidency on progress and challenges.
Government sources said enforcement would be carried out in a manner consistent with existing laws, while necessary policy adjustments would be pursued to ensure coherence across the sector.
Expected Impact
Economic observers believe the directive could lead to improved revenue inflows to the Federation Account, enhancing the capacity of governments at all levels to meet obligations in critical areas such as infrastructure, healthcare, education and security.
They also noted that improved transparency could reduce the need for excessive borrowing by sub-national governments facing fiscal constraints.
Background
Nigeria’s oil and gas sector remains a major source of public revenue, but concerns have persisted over revenue losses linked to administrative inefficiencies and complex fiscal arrangements.
Executive Order 9 of 2026 forms part of broader reforms by the current administration to strengthen public finance management and ensure that natural resource revenues are managed in the collective interest of the nation.
