The federal government has commenced a review of the Petroleum Industry Act (PIA) to tackle structural and fiscal challenges affecting revenues accruing to the Federation.
The announcement followed the inaugural meeting of the Implementation Committee for Executive Order 9 of 2026, held on February 26.
The Executive Order, issued by President Bola Ahmed Tinubu, seeks to protect federal revenues and strengthen the management of petroleum revenue flows.
According to a statement signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the PIA review is aimed at “correcting structural and fiscal anomalies that weaken Federation revenues.”
The committee agreed to establish a technical subcommittee tasked with reviewing the PIA and proposing necessary adjustments. “The subcommittee is also mandated to develop detailed guidelines within three weeks for the transition to direct remittance of petroleum revenues into the Federation Account,” the statement added.
However, the committee stressed that the transition would respect existing contractual and financing arrangements to maintain investor confidence.
A defined transition period was approved, and contractors will continue remitting under the current process until detailed guidelines are issued.
As part of immediate steps to protect revenues, the committee directed the Nigerian National Petroleum Company Limited to halt the collection of the 30% management fee and 30% frontier exploration fund deductions from profit oil and gas under Production Sharing Contracts.
Furthermore, all remittances of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund were suspended with immediate effect.
“The President’s directive is clear: revenues from petroleum operations must be handled according to constitutional principles and support fiscal stability across the three tiers of government,” the committee reaffirmed.
Membership of the technical subcommittee includes the special adviser to the President on Energy as chairman, the Solicitor-General of the Federation, the Chairman of the Nigeria Revenue Service, the Chairman of the Forum of Commissioners of Finance, and representatives of the Minister of State for Petroleum Resources. The Budget Office of the Federation provides secretarial support.
Moreover, the committee pledged coordinated guidance and timely updates, emphasizing that these reforms are designed to ensure Nigeria’s petroleum resources deliver tangible benefits to citizens across the Federation.
