The federal government has commenced a review of the Petroleum Industry Act (PIA) to address structural and fiscal challenges affecting revenues accruing to the Federation.
The decision was taken at the inaugural meeting of the Implementation Committee for Executive Order 9 of 2026, held on February 26, 2026.
The Executive Order was issued by President Bola Ahmed Tinubu to safeguard federal revenues and strengthen the management of petroleum revenue flows.
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According to a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the review of the PIA is aimed at correcting structural and fiscal anomalies that weaken Federation revenues.
The committee resolved to establish a technical subcommittee to undertake the review and propose necessary adjustments to the law.
The subcommittee is also mandated to develop detailed guidelines within three weeks for the transition to direct remittance of petroleum revenues into the Federation Account.
The move is in line with Section 2, Sub-section 3 of Executive Order 9, which provides for direct payments by contractors of profit oil, royalty oil and tax oil into the Federation Account.
The committee, however, stressed that the transition would be implemented in a manner that respects existing contractual and financing arrangements to maintain investor confidence.
It approved a defined transition period for the operationalisation of the new direct remittance framework.
Until detailed guidelines are issued, contractors will continue to remit under the current process.
As part of immediate measures to protect Federation revenues, the committee directed the Nigerian National Petroleum Company Limited to cease the collection of the 30 per cent management fee and the 30 per cent frontier exploration fund deductions from profit oil and profit gas under Production Sharing Contracts.
It also suspended, with immediate effect, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, in line with the Executive Order.
The committee reaffirmed the President's directive that revenues accruing to the Federation from petroleum operations must be handled in accordance with constitutional principles and in a manner that supports the fiscal stability of the three tiers of government.
Membership of the technical subcommittee includes the special adviser to the President on Energy, who will serve as chairman; the Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice; the Chairman of the Nigeria Revenue Service; the Chairman of the Forum of Commissioners of Finance; and representatives of the Minister of State for Petroleum Resources (Oil). The Budget Office of the Federation will provide secretarial support.
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The committee pledged to provide coordinated guidance and timely updates as implementation progresses, noting that the reforms are designed to ensure Nigeria's petroleum resources deliver measurable benefits to citizens across the Federation.
