NNPC Backs Executive Order 9 for Financial Transparency

The Nigerian National Petroleum Company (NNPC) Limited has expressed its support for President Bola Tinubu’s Executive Order 9, stating it will enhance financial transparency across the country’s oil and gas sector. Bayo Ojulari, NNPC’s Group Chief Executive Officer, confirmed the company is actively collaborating with the government’s implementation team to provide necessary technical data, emphasizing that the order’s intent aligns with broader industry reform.

Issued last month, Executive Order 9 is designed to safeguard and redirect all hydrocarbon revenues directly to the Federation Account. It reinstates full federal government ownership and control over all minerals and natural gas, overriding a 2021 amendment to the Petroleum Industry Act (PIA) that had allowed NNPC Limited to retain 30% of Federation oil revenues as a management fee. The government cites the constitutional mandate under Section 44(3) as the order’s foundation, aiming to eliminate duplicate structures and ensure revenues are distributed appropriately among federal, state, and local governments.

While NNPC frames the directive as a move toward greater accountability, the order has drawn criticism from labour groups. Festus Osifo, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), condemned the executive action as an unconstitutional override of the PIA. He argued that using an executive order to set aside specific sections of the law—namely Sections 8, 9, and 64—creates legal uncertainty and could deter investors by signaling that Nigeria’s statutory framework is subject to unilateral change.

The clash highlights a fundamental tension between the executive’s push for immediate revenue restructuring and the statutory regime established by the PIA. NNPC’s public backing suggests a willingness to adapt to the new directive, but sustained opposition from key industry stakeholders points to potential implementation challenges. The outcome may significantly influence investor confidence and the operational framework for Nigeria’s primary revenue source, as the government moves to centralize control over oil and gas earnings.

This story was first reported by Channels Television.