BY GODWIN OBI
The Presidency has thrown its weight behind President Bola Tinubu following mounting criticism of Executive Order 9, which halts revenue deductions by the Nigerian National Petroleum Company Limited (NNPCL) and other agencies
Presidential aides insist the directive is rooted firmly in constitutional authority, arguing that provisions of the Petroleum Industry Act (PIA) cannot supersede the Constitution of the Federal Republic of Nigeria.
Special Adviser on Information and Strategy, Bayo Onanuga, said objections raised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) reflect a misunderstanding of constitutional supremacy.
“PENGASSAN is focusing on the PIA alone. The President’s action is based on the Constitution, which is superior to any other law. The PIA is not above the Constitution,” Onanuga stated, describing the union’s response as “knee-jerk.”
According to him, the Executive Order draws authority from Section 5 of the Constitution, which vests executive powers in the President, and Section 44(3), which assigns ownership and control of mineral resources to the Federal Government.
Onanuga argued that the Order is designed to restore revenues due to the Federation Account, alleging that the PIA created “structural and legal channels” for deductions, fees, and charges that depleted funds meant for federal, state, and local governments.
Presidency: Order Protects Federation Revenue
Presidential media aide Sunday Dare also defended the policy, citing Section 80(1) of the Constitution, which mandates that all revenues raised by the Federation be paid into the Consolidated Revenue Fund.
Dare maintained that Executive Order 9 neither amends nor repeals the PIA but operationalises constitutional provisions by directing that petroleum-related income — including royalties, taxes, profit oil and gas, penalties, and other receipts — be remitted into constitutionally recognised accounts.
“If the Order’s validity is disputed, the Judiciary remains the proper forum,” Dare said, stressing that the Executive is duty-bound to safeguard Federation revenues pending any court ruling.
PENGASSAN Raises Operational Concerns
PENGASSAN had opposed the directive, warning it could weaken NNPCL’s capacity to finance operations and meet statutory obligations, including contributions to the Frontier Exploration Fund, which supports hydrocarbon exploration.
Industry sources say the Order has stirred unease within the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Midstream and Downstream Gas Infrastructure Fund, amid fears of funding disruptions.
Senior Advocates Divided
The legality of the Executive Order has sharply divided senior lawyers. Several Senior Advocates of Nigeria (SANs) argue that the President lacks the authority to override an Act of the National Assembly through an executive instrument.
Among those expressing reservations, Afam Osigwe, President of the Nigerian Bar Association (NBA), said executive orders may guide administrative conduct but cannot contradict existing laws.
“A President cannot, by executive order, alter or modify a law duly enacted by the National Assembly,” Osigwe said.
Other SANs echoed similar views, emphasising that only the courts can declare a statute unconstitutional, while amendments or repeals remain the exclusive preserve of the legislature.
They warned that allowing executive instruments to nullify legislation would erode the doctrine of separation of powers and undermine democratic governance.
Counterview: Constitutional Fidelity
However, constitutional lawyer Mofesomo Tayo-Oyetibo offered a contrasting interpretation, describing Executive Order 9 as defensible within the constitutional framework.
He argued that while an Executive Order cannot repeal an Act, the President is obligated by oath to uphold the Constitution where statutory provisions appear inconsistent with it.
“The Constitution is supreme. If constitutional concerns arise in the administration of a statute, the Executive must align its conduct with the Constitution,” he said.
Tayo-Oyetibo added that Executive Order 9 does not purport to invalidate the PIA but directs agencies on revenue administration in a manner the President considers constitutionally compliant.
Private Sector Downplays Investor Fears
Leaders within the Organised Private Sector (OPS) dismissed fears that the Order could deter investors, instead framing it as a transparency-enhancing measure.
Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde, said clarity and predictability in revenue management align with global investor expectations.
“Transparency and operational integrity are critical to investor confidence,” he noted.
Similarly, Leye Kupoluyi, President of the Lagos Chamber of Commerce and Industry (LCCI), urged calm, describing the development as an internal fiscal restructuring rather than a threat to joint venture partners.
He argued that stronger accountability mechanisms could ultimately reinforce investor trust and corporate efficiency at NNPCL.
As debates intensify, legal analysts predict that the courts may eventually be called upon to determine the constitutional boundaries between executive directives and legislative authority — a decision likely to shape Nigeria’s fiscal governance landscape.
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