The Federal Government has approved a transition period for oil contractors to make direct payments into the Federation Account under Executive Order 9, issued by President Bola Ahmed Tinubu. Nigeria has a long record of challenges in oil revenue management.

In previous years, funds were often delayed or diverted before reaching the Federation Account, creating loopholes and limiting oversight. Past reforms have tried to address this by channelling payments directly from contractors, but abrupt changes sometimes disrupted contracts and unsettled investors. The transition period is designed to balance reform with continuity. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, who chairs the Implementation Committee for Executive Order 9, explained that the new system will be introduced gradually so existing contractual and financing arrangements in the oil sector are not disrupted. During this time, current payment processes remain in place until detailed operational guidelines are released. As Nigeria moves to fully operationalize direct payments, the government’s approach signals a commitment to modernizing revenue management while respecting existing systems.

The question now is whether this careful rollout will finally close the gaps that have long plagued the nation’s oil revenue and if it will be enough to secure trust from both investors and citizens alike.