The Federal Government under President Bola Ahmed Tinubu has defended its decision to compel the Nigerian National Petroleum Company Limited (NNPC) to remit all eligible revenues directly into the Federation Account, insisting the move is constitutional and does not amount to executive lawmaking.
In a statement issued on Monday and signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation and Secretary of the Implementation Committee on Executive Order 9 (EO9), the government rejected claims that the directive represents an overreach of presidential powers.
The controversy followed President Tinubu’s issuance of EO9, which ended the 30 percent management fee previously retained by NNPC on profit oil and profit gas revenues. The order mandates that such funds be paid directly into the Federation Account. The directive has since generated mixed reactions from stakeholders.
According to the government, assertions that EO9 amounts to the President “making law” reflect a misunderstanding of both constitutional provisions and the fiscal issues involved. It maintained that the order does not create new laws but enforces existing constitutional requirements regarding the custody of public revenues.
Citing Section 80(1) of the 1999 Constitution (as amended), the government stressed that all revenues raised or received by the Federation must be paid into and form one Consolidated Revenue Fund of the Federation. It added that public funds cannot legally be retained or managed outside constitutionally recognised accounts.
The statement further referenced Section 162 of the Constitution, which mandates that revenues accruing to the Federation be paid into the Federation Account for distribution in line with established allocation principles. The government argued that revenues must first enter constitutionally recognised accounts before they can be appropriated, shared, or spent.
EO9, it explained, was introduced to operationalise these constitutional provisions within the oil and gas sector. The order directs the direct remittance of petroleum revenues — including royalties, taxes, profit oil and gas, penalties, and related receipts — into recognised accounts, while strengthening reconciliation and transparency mechanisms in collection and reporting processes.
Responding to allegations that the order infringes on the powers of the National Assembly, the government cited Section 5 of the Constitution, which empowers the President to ensure the faithful execution of laws. It insisted that EO9 does not amend the Petroleum Industry Act or regulate legislative procedures but serves as an executive instrument to safeguard public funds.
The administration added that any party questioning the constitutionality of EO9 should seek judicial review, noting that the courts remain the appropriate forum for resolving such disputes.
Pending any court ruling, the government said it remains obligated to protect Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity to support FAAC distributions, budget credibility, and broader macroeconomic stability.
Last week, in a State House release signed by Bayo Onanuga, the President’s Special Adviser on Information and Strategy, the administration stated that EO9 is intended to safeguard and enhance oil and gas revenues, eliminate wasteful spending, reduce duplication within the sector, and redirect resources for the benefit of Nigerians.
