The Nigerian Presidency has defended Executive Order 9 (EO9) on oil and gas revenue management as a constitutional exercise of executive authority, rejecting claims that it represents legislative overreach by the President.
In a statement issued from Abuja, the Director-General of the Budget Office of the Federation and Secretary of the EO9 Implementation Committee, Tanimu Yakubu, clarified that the order does not create new law but operationalises existing constitutional provisions. He stated that EO9 mandates the direct remittance of all petroleum-derived revenues—including royalties, taxes, profit oil and gas, and penalties—into constitutionally recognised accounts, specifically the Federation Account.
Yakubu anchored the order’s legality in Sections 80(1) and 162 of the 1999 Constitution, which require all public revenue to be paid into a Consolidated Revenue Fund and the Federation Account, respectively. He explained that EO9 ensures these revenues do not leave the constitutional custody framework before appropriation and distribution. “Public revenue cannot lawfully be retained, applied, or warehoused outside constitutional funds,” he stressed.
Addressing criticisms, Yakubu asserted that EO9 does not usurp the legislative function of the National Assembly. “It is an executive instrument issued under Section 5 to ensure faithful execution of the Constitution and applicable laws,” he said, noting the order does not amend the Petroleum Industry Act (PIA) or regulate parliamentary procedure. He added that any challenge to the order’s constitutionality must be pursued through the judiciary, as the executive remains duty-bound to protect Federation revenues pending any court ruling.
The order is part of broader reforms to strengthen fiscal transparency and ensure timely remittances from the oil and gas sector, which funds federal, state, and local governments through the Federation Account. By tightening reconciliation and reporting protocols, the government aims to improve budget credibility and macroeconomic stability. The statement underscores that EO9 is a procedural tool for constitutional compliance, not a policy shift, and its enforcement is critical for consistent FAAC distributions and national development planning.
