By Admin
The Federal Government has directed the Nigerian National Petroleum Company Limited to immediately halt all deductions from contractor remittances under Executive Order 9 of 2026, as part of measures to strengthen federal revenue flows and fiscal transparency.
The decision was reached at the inaugural meeting of the Implementation Committee on Executive Order 9, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
He announced that NNPC Ltd must 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 with immediate effect.
The committee also suspended remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund, pending further guidelines.
The measures are aimed at addressing revenue leakages and ensuring that petroleum revenues due to the Federation are handled in line with constitutional provisions.
In addition, the committee approved a review of the Petroleum Industry Act to correct structural and fiscal anomalies affecting Federation revenues.
A technical subcommittee has been set up to develop detailed guidelines within three weeks for the transition to direct contractor payments of profit oil, royalty oil and tax oil into the Federation Account, while safeguarding existing contractual arrangements to maintain investor confidence.
