LAGOS – A Lagos-based law firm, Tope Adebayo LP, says the recently signed Executive Order 9 marks a significant shift in the management and control of petroleum revenues in Nigeria.
A senior lawyer in the firm, Mr Tope Adebayo, stated this in a statement issued to journalists on Thursday.
Reports that the order is titled: “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity.”
According to the firm, the Executive Order, signed by President Bola Tinubu on Feb. 18, mandates the direct payment of oil and gas revenues into the Federation Account.
It said the revenues covered by the order include royalties, tax oil, profit oil, gas proceeds, production sharing contract earnings and gas flare penalties.
The firm described the order as an administrative instrument designed to enforce constitutional obligations and not a legislation intended to amend the Petroleum Industry Act (PIA), 2021.
It noted that the order introduced significant changes to Nigeria’s petroleum revenue administration and integrated petroleum operations framework under the PIA.
According to the firm, the order halts certain statutory deductions and strengthens federal oversight of petroleum revenue collection, management and distribution.
It added that the order also addresses regulatory overlaps in integrated petroleum operations through joint supervision involving upstream and midstream regulatory agencies.
The firm said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) would collaborate through a Joint Project Team.
According to it, the arrangement is aimed at resolving overlaps in regulatory responsibilities and improving operational clarity.
The firm maintained that Executive Order 9 neither repealed nor altered any provision of the PIA.
It said the order was consistent with the president’s constitutional powers under Section 5 of the Constitution and aligned with revenue management provisions under Sections 44(3) and 162.
The firm further stated that effective implementation of the order could address long-standing ambiguities in integrated petroleum operations.
It added that improved collaboration between NUPRC and NMDPRA would enhance accountability, coordination and regulatory efficiency in the sector. (NAN)
