Nigeria’s petroleum sector may be entering a new phase following the signing of Executive Order 9 by President Bola Tinubu, a policy move that legal experts say could significantly reshape how oil and gas revenues are collected and managed in the country.
The Executive Order, officially titled the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, was signed on February 18, 2026, and introduces a new framework for the remittance of petroleum revenues into the Federation Account.
Under the new directive, major oil and gas earnings — including royalties, taxes, profit oil, gas proceeds, production sharing contract revenues, and gas flare penalties — are expected to be paid directly into the Federation Account.
According to legal analysis provided by Lagos-based commercial law firm, Tope Adebayo LP, the Order represents a major structural shift in Nigeria’s petroleum revenue system and introduces a stronger level of federal oversight over how oil revenues are collected and distributed.
The firm explained that the policy is not a legislative amendment but an executive implementation tool designed to reinforce constitutional provisions on revenue custody and fiscal administration. It further noted that the Order may significantly alter existing revenue flows under the Petroleum Industry Act (PIA) 2021, particularly in how petroleum earnings are managed by relevant government agencies.
Legal experts also describe the Order as a move that strengthens coordination between key regulatory bodies in the oil and gas sector, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Both agencies are now expected to operate under a joint coordination structure aimed at reducing regulatory overlap and improving operational clarity in the petroleum sector.
The law firm further noted that one of the key implications of Executive Order 9 is its potential to streamline how integrated petroleum operations are regulated, a long-standing challenge in Nigeria’s oil and gas industry where overlapping mandates have often created administrative uncertainty.
By introducing a joint regulatory framework, the Order is expected to improve accountability, reduce inefficiencies, and enhance coordination between upstream and midstream regulatory functions.
However, the implementation of the Order has also raised important legal and policy questions regarding its relationship with the Petroleum Industry Act. While the Order does not repeal or amend existing provisions of the PIA, legal analysts say it introduces a parallel executive framework that directly influences how petroleum revenues are collected and remitted.
Some experts argue that the Order reinforces constitutional provisions relating to revenue management under Sections 44(3) and 162 of the Nigerian Constitution, which govern ownership and distribution of national revenue.
Others, however, suggest that its practical impact will depend on how effectively it is implemented across federal agencies and industry operators.
For now, Executive Order 9 is being viewed as one of the most significant fiscal policy interventions in Nigeria’s oil and gas sector in recent years, with potential implications for revenue transparency, regulatory coordination, and federal fiscal control.
As implementation begins, attention is expected to focus on how government agencies interpret and operationalise the new directives, particularly in relation to existing frameworks under the Petroleum Industry Act.
What remains clear is that the Order marks a new phase in Nigeria’s attempt to streamline petroleum revenue administration and strengthen institutional control over one of the country’s most critical economic sectors.
