Energy experts and petroleum retailers have advised President Bola Ahmed Tinubu on the next steps following the issuance of Executive Order 09, which mandates the remittance of oil revenues to the federation account.
The executive order, announced last Wednesday by presidential spokesman Bayo Onanuga, has stirred debate within Nigeria’s oil and gas sector. The directive discontinues two revenue streams previously retained by the Nigerian National Petroleum Company Limited (NNPCL) — the 30 percent management fee on profit oil and gas, as well as the Frontier Exploration Fund. It also redirects gas flaring penalties and other income sources of the state-owned oil firm to the federation account.
The Federal Government said the measure is expected to boost the federation account by about N14 trillion while enhancing transparency within the national oil company.
However, stakeholders have expressed concerns over the implications of the order, particularly in relation to the Petroleum Industry Act (PIA) 2021. The development has also reportedly created uncertainty within NNPCL’s leadership regarding future operations.
The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, urged the President to withdraw the executive order, warning that it could undermine the PIA and weaken investor confidence.
In contrast, energy expert and Professor Emeritus of Petroleum Economics, Wumi Iledare, faulted the union’s position, arguing that its advocacy was misdirected. While acknowledging the far-reaching implications of the directive, he cautioned that certain aspects intersect directly with provisions of the PIA.
The Presidency has defended the executive order, maintaining that it is consistent with constitutional provisions.
In separate interviews, energy expert and Managing Partner of TENO Energy Resources Limited, Tim Okon, and the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, advised the President to engage the National Assembly to amend the PIA as the next logical step.
Dr. Okon argued that if the intention is to amend an existing law, the appropriate route is through the legislature rather than by executive order. He emphasized that the National Assembly is constitutionally empowered to make and amend laws and should therefore handle any proposed changes to the PIA.
Gillis-Harry described the executive order as a preliminary move that could catalyze necessary legislative amendments. According to him, certain provisions of the PIA require review and correction through the National Assembly. He expressed support for the directive, stating that it signals recognition of longstanding structural issues within the sector.
He also referenced longstanding concerns about unremitted and missing oil revenues, noting that publicly available information reflects significant financial losses over the years. The leadership of NNPCL, headed by Bayo Ojulari, has yet to provide clarity on N210 trillion flagged as unaccounted funds in audited financial statements covering 2017 to 2023.
The matter has been under review by the Senate Committee on Public Accounts, chaired by Aliyu Wadada, since last year.
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