Tinubu’s Executive Order 09 Sparks Oil Sector Debate as Experts Urge PIA Amendment Through National Assembly
Energy policy analysts and petroleum retail stakeholders have advised President Bola Ahmed Tinubu on the appropriate next steps following the rollout of Executive Order 09, which mandates the remittance of specific oil revenues to the federation account.
The directive, announced last Wednesday through a statement issued by presidential spokesman Bayo Onanuga, has generated significant reactions across Nigeria’s oil and gas sector. PulseNets learnt that the executive order has unsettled key actors within the industry, particularly regarding its operational and legal implications.
Under the new order, two revenue streams previously retained by the Nigerian National Petroleum Company Limited (NNPCL) have been discontinued. These include the 30 percent management fee on profit oil and gas, as well as the Frontier Exploration Fund. In addition, gas flaring penalties and other income channels of the state-owned oil company are now to be redirected to the federation account.
According to the Federal Government, the measure is projected to inject approximately N14 trillion into the federation account while strengthening transparency and financial accountability within the national oil company structure.
However, PulseNets reports that the development has triggered robust debate among stakeholders, particularly concerning its alignment with the Petroleum Industry Act (PIA) 2021. Industry sources who spoke to PulseNets indicated that the directive has also created internal uncertainty within NNPCL’s leadership over future operational frameworks.
Last week, the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, urged President Tinubu to rescind the order, warning that it could potentially weaken the PIA and negatively impact investor confidence in Nigeria’s petroleum sector.
In contrast, respected energy economist and Professor Emeritus of Petroleum Economics, Wumi Iledare, faulted PENGASSAN’s position. PulseNets gathered that Iledare argued the union may be directing its advocacy toward the wrong institutional channel. He had previously outlined the broad implications of the presidential directive but cautioned that certain provisions of the order intersect directly with clauses embedded in the PIA.
Meanwhile, the Presidency, in a separate statement issued Monday by Bayo Onanuga, defended the legality of Executive Order 09, maintaining that the directive is consistent with constitutional provisions governing federal revenues.
In exclusive interviews obtained by PulseNets on Monday, energy expert and Managing Partner of TENO Energy Resources Limited, Tim Okon, alongside the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, advised the President to channel the next phase of reform through legislative engagement with the National Assembly.
Dr. Okon maintained that pursuing amendments to the PIA through the legislature would represent a more procedurally sound and institutionally appropriate pathway than relying solely on executive instruments.
“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 Executive Order 09 as an initial catalyst toward a broader legislative correction of contentious PIA provisions.
“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 further referenced longstanding allegations surrounding unremitted and missing oil revenues, noting that publicly accessible data highlights the scale of financial leakages recorded over the years.
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“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.
PulseNets reports that the current leadership of the Nigerian National Petroleum Company Limited, headed by Bayo Ojulari, has yet to provide clarification regarding N210 trillion flagged as unaccounted funds in audited financial statements covering 2017 to 2023. The matter was earlier raised by the Senate Committee on Public Accounts chaired by Aliyu Wadada, as part of ongoing legislative oversight proceedings.
