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Executive Order on oil revenue enforces constitutional provisions — Presidency

Naija News • Feb 23
Executive Order on oil revenue enforces constitutional provisions — Presidency
**Tinubu's Executive Order: A Constitutional Instrument or a Presidential Power Grab?** In a recent move, President Bola Tinubu signed Executive Order 9 (EO9), directing the direct remittance of oil and gas revenues to the Federation Account. But is this order a bold step to safeguard public revenues or a brazen attempt to usurp the powers of the National Assembly? The Presidency has weighed in, clarifying that the order is a constitutional instrument aimed at enforcing existing provisions rather than making new law. The controversy surrounding EO9 has sparked heated debate, with many analysts hailing it as a much-needed move to curb excessive deductions and restore the constitutional entitlements of federal, state, and local governments. Under the Petroleum Industry Act (PIA), the Nigerian National Petroleum Company Limited (NNPCL) retains a significant portion of oil and gas profit as a management fee, significantly reducing net inflows to the federation account. EO9 seeks to scrap this arrangement, directing that all revenues due to the Federation under production-sharing, profit-sharing, and risk-service contracts be paid directly into the Federation Account. But critics argue that this move contravenes the PIA, which was endorsed by President Tinubu's predecessor, the late President Muhammadu Buhari. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has rejected the directive, warning that it sets a dangerous precedent that could undermine investor confidence in the sector. So, what is the truth behind EO9? According to the Presidency, the order is a simple enforcement of constitutional provisions governing the custody and management of federation revenues. Citing Section 80(1) of the 1999 Constitution (as amended), the government notes that all revenues or other moneys raised or received by the Federation must be paid into the Federation Account. EO9, therefore, is seen as a necessary corrective measure to ensure that the Federation Account receives its rightful share of oil and gas revenues. As the debate rages on, one thing is clear: EO9 has sparked a much-needed conversation about the management of public revenues in Nigeria. Whether the order is seen as a constitutional instrument or a presidential power grab, its implications for the oil and gas sector and the nation as a whole cannot be overstated. As Nigerians, we must continue to engage in this conversation, demanding transparency and accountability in the management of our public resources.
Source: Original Article. AI-enhanced version.