President Bola Tinubu has defended his controversial Executive Order (EO9), which halts revenue deductions previously made by the Nigerian National Petroleum Company Limited (NNPCL) and other agencies. The Presidency insists the Petroleum Industry Act (PIA) of 2021 is subordinate to the Nigerian Constitution, emphasizing that the EO seeks to restore constitutionally guaranteed revenue allocations to federal, state, and local governments. Presidential spokesperson Bayo Onanuga stated that criticism from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) reflects a misunderstanding of the Constitution’s supremacy over ordinary legislation.
The Executive Order has sparked heated debate among Nigeria’s top legal minds. Eight Senior Advocates of Nigeria (SANs) argued that President Tinubu cannot override an Act of the National Assembly through executive fiat, insisting that only the judiciary can determine a law’s constitutionality. Notable SANs, including Lekan Ojo and Adeola Adedipe, highlighted that executive orders are administrative tools, meant to facilitate the implementation of existing laws, not replace or amend them. The Nigerian Bar Association, led by Afam Osigwe (SAN), echoed the view that the President lacks authority to unilaterally modify legislation.
The Presidency maintains that EO9 derives authority from sections 5 and 44(3) of the 1999 Constitution, which vest executive powers in the President and recognize federal ownership of natural resources. Presidential media aide Sunday Dare clarified that the order does not amend the PIA but directs the remittance of petroleum revenues—such as royalties, taxes, and profit oil—into constitutionally recognized accounts. The Administration argues the measure prevents revenue leakages and ensures funds due to all tiers of government are protected, pending any judicial review.
Despite legal disputes, Nigerian business leaders have welcomed the Executive Order as a step toward greater transparency and operational clarity. Adewale Oyerinde, Director-General of the Nigeria Employers’ Consultative Association, said EO9 aligns with global investor expectations, boosting predictability and confidence in Nigeria’s petroleum sector. Similarly, Leye Kupoluyi, President of the Lagos Chamber of Commerce and Industry, noted the order strengthens NNPCL’s internal management without threatening joint venture partners or private investors, potentially supporting future growth and public listing plans.
The ongoing debate underscores broader questions about the scope of executive powers in Nigeria. Legal experts caution that while the Executive must uphold the Constitution, it cannot unilaterally nullify statutory provisions; judicial determination remains the only valid path. Nevertheless, proponents argue EO9 represents a proactive effort to align petroleum revenue management with constitutional requirements. As the discussion unfolds, both the government and the courts may shape the future balance between executive authority, legislative power, and fiscal accountability in Nigeria’s oil sector.
source: punch