The Nigerian Presidency on Monday defended Executive Order 9 (EO9), describing it as a constitutional instrument designed to safeguard public oil and gas revenues rather than an attempt to bypass the National Assembly.
In a statement issued through President Bola Tinubu’s Special Adviser on Media and Public Communication, Sunday Dare, the government rejected criticisms suggesting that EO9 amounts to the President “making law.”
“Commentary suggesting that Executive Order 9 amounts to the President ‘making law’ misstates both the Constitution and the fiscal question at issue. EO9 does not create law; it enforces constitutional custody of Federation revenues,” the statement said.
EO9, signed last week, directs that all royalty oil, tax oil, profit oil, profit gas, and other revenues under production-sharing, profit-sharing, and risk-service contracts be paid directly into the Federation Account. The order also eliminated the 30 percent Frontier Exploration Fund established under the Petroleum Industry Act (PIA) and discontinued the 30 percent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited (NNPCL).
The presidency anchored the directive on Sections 5 and 44(3) of the 1999 Constitution (as amended), noting that the move seeks to protect oil and gas revenues, curb excessive deductions, and restore constitutional entitlements of federal, state, and local governments to the federation account.
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Under the current PIA framework, NNPCL retains 30 percent of oil and gas profit as a management fee and another 30 percent for frontier exploration, significantly reducing net inflows to the federation account, the government said.
While some experts have welcomed the order as a boost to transparency and fiscal integrity, it has drawn criticism from others who argue it undermines provisions of the PIA enacted under former President Muhammadu Buhari.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) last Thursday condemned EO9, describing it as a dangerous precedent that could erode investor confidence in the sector.
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The Presidency, however, maintained that EO9 merely enforces existing constitutional provisions governing the custody and management of federation revenues. Citing Section 80(1) of the Constitution, it stressed that “all revenues or other moneys raised or received by the Federation shall be paid into and form one Consolidated Revenue Fund of the Federation,” and cannot be retained or applied outside constitutionally recognised accounts. Section 162 similarly requires revenues accruing to the federation to be paid into the federation’s account for distribution in line with constitutional allocation principles.
According to the government, EO9 operationalises these provisions within the oil and gas sector, directing the direct remittance of petroleum revenues including royalties, taxes, profit oil and gas, penalties, and related receipts into constitutionally recognised accounts.
The order also aims to strengthen reconciliation processes and improve transparency in revenue collection, custody, and reporting systems.
The Presidency emphasized that EO9 does not intrude into legislative competence. Section 60(1) of the Constitution preserves the procedural autonomy of the National Assembly. EO9 neither amends the PIA nor repeals any statute, but was issued under Section 5 of the Constitution, which vests the President with executive powers to ensure faithful execution of the Constitution and existing laws.
The government added that any dispute over the order’s validity should be resolved by the courts. “Pending any judicial pronouncement, the Executive is duty-bound to protect Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability,” the statement said.
