President Bola Tinubu’s issuance of Executive Order 09, mandating the remittance of all oil and gas revenues to the federation account, has generated divergent views among stakeholders in Nigeria’s petroleum sector, with calls emerging for a legislative review of the governing Petroleum Industry Act (PIA) 2021.
The directive, announced last week, terminates two revenue streams previously retained by the Nigerian National Petroleum Company Limited (NNPCL): a 30 per cent management fee on profit oil and gas, and the Frontier Exploration Fund. It also redirects gas flaring penalties and other NNPCL incomes to the federation account. The Federal Government projects the order will add approximately N14 trillion to the federation account and enhance transparency at the national oil company.
However, the move has created operational uncertainty at NNPCL and ignited debate over its compatibility with the PIA. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the president to withdraw the order, warning it could undermine the PIA and deter investment. Energy expert Professor Wumi Iledare countered that the union’s advocacy was misplaced, noting the order’s provisions overlap with the PIA.
In separate interviews, energy consultant Dr. Tim Okon and Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), argued that amending the PIA through the National Assembly is the appropriate path forward. Dr. Okon stated that altering legislation via the legislature, rather than executive order, is the constitutionally sound method. Gillis-Harry viewed the order as a catalyst for amending “critical and inimical” sections of the PIA, praising it as a recognition of systemic issues.
The presidency has defended the order as constitutional. The discussion unfolds amid ongoing scrutiny of NNPCL’s finances, with the Senate Committee on Public Accounts highlighting over N210 trillion in unaccounted funds flagged in audited statements from 2017 to 2023. Stakeholders assert that persistent allegations of unremitted revenues underscore the need for reform.
The situation places the Tinubu administration’s oil revenue policy at a crossroads, where executive action meets statutory law, and highlights a sector awaiting a definitive legislative framework to ensure clarity and investor confidence.
