Introduction
On Wednesday, 18th February 2026, President Bola Ahmed Tinubu issued Executive Order No. 9 dated 13th February 2026. The crux of the Executive Order is the direct remittances of all oil and gas revenues due to the Federal Government to the Federation Account. The Executive Order, which will radically alter operations in the Nigerian oil and gas industry, affects the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority, all contractors/operators of oil and gas assets held under Production Sharing Contracts (PSC), all participants in the Nigerian oil and gas industry, the Federal Government and Nigerians, at large.
It is important to consider the following:
a. The essence of the Executive Order.
b. The nature of executive orders and whether or not it can be used in Nigeria.
c. Whether or not the Executive Order can override or overrule the Petroleum Industry Act 2021.
d. The impact of the Executive Order on foreign investors and the Nigerian environment.
e. The gaps in the Executive Order.
The Essence of the Executive Order
It is noteworthy that the rationale behind the Executive Order is traceable to Section 44 (3) of the 1999 Constitution of the Federal Republic of Nigeria as amended (CFRN), which vests ownership and control of all minerals, minerals oils and natural gas in Nigeria in the Government of the Federation. The purpose of the Executive Order is also traceable to Section 162 of the CFRN. Section 162 (1) of the CFRN provides that all revenues collected by the Government of the Federation must be paid into the Federation Account. The revenues exclude proceeds from the Personal Income Tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory Abuja.
The Executive Order provides for five major things, among others to wit:
• Suspension of the NNPC’s collection and management of 30% of the profit oil and gas allocated to the Frontier Exploration Fund;
• Suspension of the payment of 30% of profit oil and profit gas, which represents management fee to the NNPC;
• Direct remittance of revenue (royalty oil, tax oil, profit oil and profit gas) to the Federation Account by operators/contractors of oil and gas assets related to PSCs;
• Payment by NUPRC of proceeds from penalties imposed on operators for flaring gas into the Federation Account and cessation of payments of such proceeds into the Midstream and Downstream Gas Infrastructure Fund (MDGIF); and
• Establishment of an Implementation Committee to ensure the effective and coordinated implementation of the Executive Order.
