The Federal Government has approved a transition period for the implementation of direct payments by oil contractors into the Federation Account under the recent Executive Order 9 issued by President Bola Ahmed Tinubu.
The move, according to the government, is aimed at strengthening the management of petroleum revenues and safeguarding public funds, while ensuring a smooth shift to the new financial framework.
The decision was taken by the Implementation Committee for Executive Order 9 of 2026 following its inaugural meeting held on February 26, 2026. The committee is chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
In a statement issued on Monday by Edun, the government said the approved transition period would allow the new direct payment system to be introduced without disrupting existing contractual and financing arrangements in the oil and gas sector.
He explained that the policy was designed to enhance transparency and accountability in the handling of revenues from petroleum operations. The new directive requires oil contractors to remit payments directly into the Federation Account, a move expected to strengthen the financial position of the federal, state, and local governments.
The Executive Order by President Tinubu mandates that revenues from petroleum operations be managed in a manner that protects public funds and reinforces the finances of the three tiers of government.
Officials said the transition arrangement reflects the administration’s effort to balance reform with stability in a sector critical to Nigeria’s economy, while ensuring that ongoing investments and contractual obligations are not adversely affected.
Further details on the timeline and operational guidelines for the implementation are expected to be released by the committee in due course.
