Oil Revenues: Presidency Defends Executive Order, Denies Overreach

The Federal Government has defended Executive Order 9 (EO9), insisting that the directive is rooted in constitutional provisions. 

Last week, President Bola Ahmed Tinubu issued an Executive Order directing direct remittance of oil and gas revenues to the Federation Account.

The development was followed by a series of commentaries alleging breaches and job losses resulting from the directive.

But in a statement by Tanimu Yakubu, Director-General, Budget Office of the Federation, Secretary, Implementation Committee on Executive Order 9 said the commentary suggesting that the president was making law through the order misrepresents reality, saying the claim “misstates both the Constitution and the fiscal question at issue”.

According to the statement, the president did not create new laws, but reinforced existing constitutional provisions.

The statement reads, “Section 80(1) of the Constitution (1999, as amended) is mandatory: all revenues or other moneys raised or received by the Federation shall be paid into and form one Consolidated Revenue Fund of the Federation. Public revenue cannot lawfully be retained, applied, or warehoused outside constitutional funds.

“Section 162 complements this rule by requiring revenues accruing to the Federation to be paid into the Federation Account for distribution in accordance with constitutional allocation principles. The order of legality is clear: revenue must first enter constitutionally recognised accounts before it can be appropriated, shared, or spent.

“EO9 operationalises these provisions in the oil and gas sector by directing direct remittance of petroleum revenues – including royalties, taxes, profit oil and gas, penalties, and related receipts – into constitutionally recognised accounts, and by tightening reconciliation and transparency across collection, custody, and reporting.

“EO9 does not intrude into legislative competence. Section 60(1) preserves the procedural autonomy of the National Assembly; EO9 does not regulate legislative procedure, amend the Petroleum Industry Act (PIA), or repeal any statute. It is an executive instrument issued under Section 5 to ensure faithful execution of the Constitution and applicable laws.

However, the statement urged those contesting the constitutional validity of EO9 to seek legal redress through appropriate judiciary channels.

It added, “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.” (Daily trust)