The Presidency has defended President Bola Tinubu’s Executive Order, which halted revenue deductions by the Nigerian National Petroleum Company Limited and other agencies.
It said the Petroleum Industry Act violates and is not superior to the Nigerian Constitution.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that criticism of the directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria demonstrated a lack of understanding of the constitutional supremacy over ordinary legislation.
“PENGASSAN is focusing on PIA alone. The President’s action is based on the Nigerian Constitution, which PIA violates in allowing the deductions that the President has now stopped. PIA is not superior to our constitution,” Onanuga stated in a response to inquiries by The PUNCH on Monday.
The Petroleum and Natural Gas Senior Staff Association of Nigeria had on Friday opposed the presidential fiat, accusing the President of violating the PIA with his revenue retention order.
But the presidential spokesman insisted the union made a “knee-jerk reaction” without studying the constitutional provisions underpinning the directive.
“PENGASSAN should have read the constitution before making its knee-jerk reaction,” he said.
Onanuga explained that the Executive Order derives its authority from section 5 of the 1999 Constitution, which vests executive powers of the Federation in the President, including the maintenance of the Constitution and implementation of federal laws.
He said the directive is further anchored on section 44(3) of the Constitution, which vests ownership, control, and derivative rights in all minerals, mineral oils, and natural gas in Nigeria in the Government of the Federation.
According to the presidential aide, the Executive Order seeks to restore constitutional revenue entitlements of the Federal, State, and Local Governments, which were “taken away in 2021 by the Petroleum Industry Act.”
“The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges, and fees,” Onanuga stated.
But the union argued that the directive would cripple the company’s ability to fund operations and fulfil its statutory obligations, including contributions to the Frontier Exploration Fund, critical for hydrocarbon exploration in 2026.
The PUNCH reported that the directive has sparked deep concerns within the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company Limited, and the board and management of the Midstream and Downstream Gas Infrastructure Fund.
However, the Presidency maintained that the order is necessary to plug revenue leakages and ensure that funds constitutionally due to all tiers of government are not diverted through statutory deductions.
Also, Presidential media aide Sunday Dare defended the Order in a post on X, stating that section 80(1) of the Constitution mandates that all revenues raised or received by the Federation must be paid into the Consolidated Revenue Fund.
He said Executive Order 9 does not create new law or amend the PIA but operationalises constitutional provisions by directing the remittance of petroleum revenues — including royalties, taxes, profit oil and gas, penalties, and related receipts — into constitutionally recognised accounts.
“EO9 does not intrude into legislative competence,” Dare stated, adding that if its validity is disputed, the Judiciary remains the proper forum.
Pending any judicial determination, he said, the Executive is duty-bound to protect Federation revenues and uphold constitutional supremacy.
The PIA, signed into law in August 2021 by former President Muhammadu Buhari, granted NNPCL significant operational and financial autonomy, including the right to retain revenues for reinvestment before remitting proceeds to the Federation Account.
Section 54 of the Act specifically exempts NNPCL from the Fiscal Responsibility Act and allows it to operate on commercial terms without certain government financial regulations.
However, protests have continued o mount over the executive order, with a cross-section of senior advocates faulting the President’s decision.
The senior lawyers raised constitutional concerns over the legality of Executive Order 9, arguing that President Tinubu lacks the authority to override or set aside an Act of the National Assembly through an executive instrument.
Oil revenue row: Presidency defends Tinubu as legal titans split over Executive Order
