By Muhammad Mamman
The Federal Government has formally begun enforcing a bold new executive directive that requires petroleum earnings to be remitted straight into the Federation Account Allocation Committee (FAAC), in a move officials say will strengthen fiscal transparency and boost revenue shared with states and local governments. 
President Bola Ahmed Tinubu’s Executive Order 9 of 2026 — signed earlier this month — seeks to overhaul decades‑old revenue practices by mandating that royalty, tax, profit oil and gas earnings, and related proceeds flow directly into the federation account instead of being filtered through intermediary entities. 
At a statement issued in Abuja on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the commencement of implementation following an inaugural inter‑ministerial meeting designed to fast‑track compliance with the order. 
Government officials argue the reform will plug long‑standing leakages in oil revenue administration, expand the federation pool available for monthly distribution, and strengthen the fiscal capacity of sub‑national governments. Supporters say it could reinvigorate confidence in public financial management and curb inefficiencies associated with revenue deductions previously retained by state‑linked entities. 
However, the policy has stirred debate among lawmakers and industry watchers — with critics warning that the executive approach bypasses established legislative routes and may have unintended consequences for energy sector investment and operational autonomy. A scheduled parliamentary probe into the order was recently postponed as stakeholders prepare for broader hearings. 
In endorsing the overhaul, the government maintains that direct remittance aligns with constitutional revenue sharing provisions and underscores a broader commitment to fiscal federalism. Officials say they expect the changes to translate into higher allocations and more predictable funding for states and local councils in coming FAAC rounds. 
