Edun hints at PIA amendment to boost oil sector governance

THE Nigerian government has begun moves to strengthen oversight of petroleum earnings, with the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, indicating that the Petroleum Industry Act (PIA) may be amended to support the rollout of President Bola Tinubu’s Executive Order 9.

Edun disclosed in a statement that the implementation committee under his leadership held its first meeting on February 26, 2026, in Abuja. At the meeting, members reiterated the president’s instruction that all petroleum-related revenues due to the federation must be managed in line with constitutional provisions, safeguarded for the federation, and used to promote fiscal stability at federal, state, and local government levels.

As part of the new directive, the Nigerian National Petroleum Company (NNPC) Limited is to immediately discontinue the deduction of a 30 percent management fee and a separate 30 percent frontier exploration fund from profit oil and profit gas under Production Sharing Contracts (PSCs).

The order also halts the remittance of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF). In addition, contractors are expected to begin paying profit oil, royalty oil, and tax oil directly into the federation account. However, the transition must take into account existing agreements and financing structures to avoid disrupting investor confidence.

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To manage the shift, the committee approved the creation of a technical subcommittee that will produce clear transition guidelines within three weeks. The same subcommittee has been assigned to examine the PIA with a view to correcting structural and fiscal gaps that may be limiting government revenue.

The team will be headed by the special adviser to the president on energy and will include the solicitor-general of the federation, the permanent secretary of the Federal Ministry of Justice, chairman of the Nigeria Revenue Service, representatives of the Forum of Commissioners of Finance, and the Ministry of State for Petroleum Resources. The Budget Office of the Federation will provide secretariat support.

Mr Edun stated that, pending the issuance of formal guidelines, contractors should continue to follow the existing remittance procedures.

According to officials, the anticipated review will aim to block revenue leakages, improve accountability, and update fiscal terms to reflect prevailing market conditions. The committee said it will issue further updates as implementation advances and expressed appreciation to stakeholders supporting efforts to ensure petroleum revenues translate into measurable benefits for Nigerians.