The President, through a statement issued last Wednesday by his spokesman, Bayo Onanuga, announced the executive order, a move that has unsettled Nigeria’s oil sector.
The order discontinues two revenue streams previously retained by the Nigerian National Petroleum Company Limited— 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.
According to the Federal Government, the Executive Order is expected to add about N14 trillion to the federation account while improving transparency within the national oil company.
However, the development has sparked debate among stakeholders in the oil and gas industry, particularly over its implications for the Petroleum Industry Act (PIA) 2021. The move has also reportedly created uncertainty within the leadership of the NNPCL regarding its future operations.
Last week, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, called on President Tinubu to withdraw the executive order, warning that it could undermine the PIA and erode investor confidence.
In contrast, energy expert and Professor Emeritus of Petroleum Economics, Wumi Iledare, criticized PENGASSAN’s stance, arguing that the union was channeling its advocacy in the wrong direction.
He had earlier outlined the far-reaching implications of the president’s directive but cautioned that certain aspects of the order directly intersect with provisions of the PIA.
Meanwhile, the Presidency, in a statement on Monday by Bayo Onanuga, defended the executive order, insisting that it aligns with the Nigerian Constitution.
But in exclusive interviews with DAILY POST on Monday, energy expert and Managing Partner of TENO Energy Resources Limited, Tim Okon, alongside the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, urged the President to engage the National Assembly to amend the PIA as the next step.
Speaking on the matter, Dr. Okon maintained that amending the law through the legislature would have been a more appropriate approach than issuing an executive order.
“But I would actually also just state that if the purpose is to amend a law, laws are amended, but we just propose it to the National Assembly.
“So, I think the preferred route to amending any law is to go to the National Assembly and have it amended. It’s just a better approach to let the National Assembly amend laws rather than do executive orders. So, those would just be my thoughts.
“The National Assembly makes laws, and they draft them, and then they amend them. So, the route to making changes in the PIA is essentially to take it to the National Assembly and make the amendment,” he said.
On his part, Gillis-Harry described the executive order as a preliminary step towards legislative amendment of the PIA.
“This is one of the steps. The executive orders will catalyze the process of getting to the point where some very critical and inimical contents of the PIA must be expunged and repaired through the National Assembly.
“I am happy about it. Every day I think about Executive Order 9. I am happy because clearly it shows that this president is now realizing what is wrong with Nigeria,” he said.
He also referenced persistent allegations of unremitted and missing oil revenues, noting that publicly available information reflects the magnitude of financial losses over the years.
“If you Google ‘stolen money’ or ‘missing money in Nigeria,’ you will be shocked at how many billions and trillions are mentioned— specific amounts that were not remitted,” he stated.
The leadership of the Nigerian National Petroleum Company Limited, headed by Bayo Ojulari, is yet to account for N210 trillion flagged as unaccounted funds in audited financial statements spanning 2017 to 2023.
The issue was raised by the Senate Committee on Public Accounts, chaired by Aliyu Wadada since last year.
