Nigeria’s Special Adviser to the President on Energy, Olu Arowolo Verheijen, has described the gazetting of Executive Order 9 as a structural reform that places “revenue transparency and institutional clarity at the centre of Nigeria’s fiscal strategy.”
In a public statement, Verheijen said her mandate from President Bola Ahmed Tinubu was clear: ensure that Nigeria’s oil, gas and power assets deliver measurable value to Nigerians. Executive Order 9, she argued, realigns the country’s hydrocarbon revenue framework with constitutional provisions and clarifies institutional mandates across the sector.
Direct Remittance of Oil and Gas Revenues
The Order restructures the flow of government entitlements under production-sharing and related contracts — including Royalty Oil, Tax Oil, Profit Oil and Profit Gas — so that they are paid directly into the Federation Account.
For federal, state and local governments, predictable remittance channels strengthen fiscal planning and enhance budget credibility. By clarifying revenue pathways and reducing discretionary deductions, the reform addresses persistent concerns about opacity in hydrocarbon revenue administration.
Verheijen characterised the adjustment as “governance architecture in action,” underscoring that fiscal authority, regulatory oversight and commercial operations must operate within clearly defined roles.
Clarifying Institutional Boundaries
A core pillar of the reform is the strict separation of mandates:
Commercial entities operate commercially.
Regulators regulate.
Fiscal authorities collect and allocate transparently.
The clarification directly affects NNPC Limited, which Verheijen said will continue evolving as a commercially disciplined enterprise operating strictly within its statutory framework.
For investors, institutional clarity reduces regulatory ambiguity — a key determinant of country risk premiums in capital-intensive upstream oil and gas markets.
Macro-Fiscal and Sovereign Implications
Executive Order 9 also carries macroeconomic weight. Clear revenue architecture enhances sovereign credibility, supports deficit management and strengthens Nigeria’s engagement with international capital markets.
In a global energy system characterised by capital discipline and heightened fiscal scrutiny, transparent revenue flows and defined institutional mandates are foundational to long-term competitiveness.
A Broader Reform Architecture Under Verheijen
Executive Order 9 forms part of a wider reform programme led by Verheijen since assuming office.
Working within the administration of President Tinubu, she has helped drive a series of presidential executive actions and legislative refinements designed to streamline regulatory responsibilities, accelerate upstream project approvals and improve fiscal competitiveness in oil and gas.
These reforms have included clarifications around contract sanctity, improvements in production-sharing contract administration, regulatory coordination across upstream and midstream segments, and measures aimed at strengthening the commercial posture of state-linked energy entities.
The cumulative objective has been to restore investor confidence following years of underinvestment. Since the reform cycle began, Nigeria has recorded renewed capital commitments across upstream oil developments, gas processing projects and power-sector infrastructure, alongside re-engagement by international and indigenous operators seeking greater fiscal certainty.
By combining executive action with legislative alignment and institutional restructuring, Verheijen’s reform agenda has sought to reduce systemic friction in the energy value chain — positioning Nigeria to compete more effectively for global capital in a tightening energy investment landscape.
With Executive Order 9, the emphasis shifts decisively toward fiscal discipline: revenue transparency and institutional clarity embedded at the centre of national energy governance.
