The Federal Government has approved a transition period for oil contractors to begin paying petroleum revenues directly into the Federation Account. The decision follows the implementation of Executive Order 9 signed by President Bola Tinubu to improve transparency and reduce revenue leakages.
The announcement was made after the first meeting of the Implementation Committee, chaired by Finance Minister Wale Edun. He said the transition would prevent disruption to existing contracts and protect investor confidence in Nigeria’s oil sector.
Under the new system, revenues from profit oil, royalty oil, and tax oil will be remitted straight into the Federation Account. However, current payment arrangements will remain in place until detailed guidelines are released.
The government also directed NNPC Limited to stop certain deductions under Production Sharing Contracts, including management fees and frontier exploration funds. Officials say the reform aims to strengthen public finance management across federal, state, and local governments.
