Executive Order 9: How Tinubu is Rewriting Nigeria’s Oil Revenue Structure

By Ahmed Salami

President Bola Ahmed Tinubu has launched what may become one of the most consequential fiscal reforms of his administration with the signing of Executive Order 9 of 2026, a directive aimed at restructuring how Nigeria’s oil revenues are collected, managed, and remitted to the Federation Account.

For decades, Nigeria’s oil and gas sector, the backbone of the nation’s economy, has operated under layered financial arrangements that allowed various deductions before revenues reached the Federation Account. While these structures were often defended as necessary for operational management and sectoral investments, critics argued that they reduced transparency and weakened distributable revenue meant for federal, state, and local governments.

Executive Order 9 directly confronts that system.

Under the new directive, all Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and other government entitlements under Production Sharing Contracts and related agreements must now be paid directly into the Federation Account. The Order also eliminates the additional 30 percent management fee and the 30 percent Frontier Exploration deduction, both of which previously reduced the net revenues available for national allocation.

This shift represents more than an administrative adjustment; it signals a structural recalibration of Nigeria’s oil revenue framework. By insisting on direct remittance, President Tinubu is reinforcing the constitutional principle that all revenues due to the Federation must flow transparently into the central account for equitable distribution among the three tiers of government.

The move comes at a time when Nigeria faces significant fiscal pressures. Rising debt servicing costs, demands for improved infrastructure, investments in security, education, and healthcare, as well as ongoing economic stabilization efforts, require stronger and more predictable revenue streams. Plugging oil revenue leakages, therefore, becomes not just desirable but essential.

A key dimension of the reform is the clarification of the operational boundary of the Nigerian National Petroleum Company Limited (NNPC Limited). Since its transition into a limited liability company under the Petroleum Industry Act, questions have persisted about the balance between its commercial independence and its public accountability.

Executive Order 9 reinforces that NNPC Limited must function strictly as a commercial enterprise, without engaging in duplicative deductions or revenue retention practices that conflict with direct constitutional remittance obligations. This distinction is critical for governance clarity. A commercially run national oil company can coexist with transparent public finance management, but only when financial flows are clearly defined and monitored.

The President has also approved the establishment of an Implementation Committee to oversee and coordinate enforcement of the Executive Order. This suggests recognition that policy declarations alone do not guarantee results. Effective implementation will require inter-agency collaboration, rigorous oversight, and measurable compliance mechanisms.

Beyond immediate fiscal gains, the reform carries broader implications. Clearer and more transparent revenue management can enhance investor confidence in Nigeria’s oil and gas sector. In a global energy market increasingly sensitive to governance standards and fiscal accountability, structural clarity can influence capital flows and long-term investment decisions.

Additionally, improved remittances to the Federation Account could translate into stronger monthly allocations for states and local governments. For subnational administrations struggling with salary obligations and infrastructure deficits, even incremental increases in revenue distribution can have meaningful developmental impact.

The administration has also announced plans for a comprehensive review of the Petroleum Industry Act to address structural and fiscal anomalies that may hinder optimal revenue generation. This signals that Executive Order 9 may be part of a broader reform trajectory rather than an isolated policy action.

Politically and economically, the message is unmistakable: Nigeria can no longer afford revenue fragmentation in its most critical sector. By restructuring the oil revenue system, President Tinubu is positioning fiscal discipline and accountability as central pillars of his governance agenda.

Whether Executive Order 9 becomes a historic turning point will ultimately depend on its faithful implementation and the measurable improvements it delivers. However, its intent is clear, to safeguard the Federation Account, strengthen the national budget, and ensure that Nigeria’s oil wealth more fully serves the Nigerian people.

In rewriting the oil revenue structure, the administration is not merely adjusting financial procedures; it is attempting to redefine the relationship between national resources and public trust.

Salami, a journalist and public affairs analyst, writes from Abuja.