The Federal Government has defended Executive Order 9 (EO9), insisting that it reinforces constitutional provisions on federation revenue custody and does not confer legislative powers on the President.
In a statement issued Monday by Tanimu Yakubu, Secretary of the EO9 Implementation Committee, the government dismissed claims that the order amounts to the President “making law,” describing such views as a misinterpretation of constitutional and public finance provisions.
Yakubu cited Section 80(1) of the Constitution, which mandates that all revenues collected by the Federation be paid into a single account — the Consolidated Revenue Fund.
“EO9 does not create law; it enforces constitutional custody of Federation revenues. Public revenue cannot lawfully be retained, applied, or warehoused outside constitutional funds,” the statement read.
He also referenced Section 162 of the Constitution, which requires that revenues accruing to the Federation be paid into the Federation Account for distribution in line with constitutional allocation principles. According to him, revenues must first enter constitutionally recognised accounts before appropriation, sharing, or expenditure.
Earlier this month, President Bola Tinubu signed EO9, suspending the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited and directing the full remittance of oil and gas revenues to the Federation Account.
The Federal Ministry of Finance said the directive aims to align oil and gas revenue flows with constitutional provisions, curb leakages, and enhance fiscal transparency, amid declining inflows to the Federation Account despite improved oil production and favourable market conditions.
The order also addresses fiscal and structural arrangements introduced under the Petroleum Industry Act, which commercialised NNPC into a limited liability company. According to the ministry, some of those arrangements resulted in off-budget allocations and deductions from Federation revenues.
While some stakeholders have criticised the directive, the government maintains that EO9 operationalises constitutional requirements within the oil and gas sector by mandating direct remittance of petroleum revenues — including royalties, taxes, profit oil and gas, penalties, and related receipts — into constitutionally recognised accounts. It also strengthens reconciliation and reporting processes.
The statement further clarified that the order does not interfere with legislative authority, noting that Section 60(1) safeguards the procedural autonomy of the National Assembly.
“EO9 does not regulate legislative procedure, amend the Petroleum Industry Act, or repeal any statute. It is an executive instrument issued under Section 5 to ensure faithful execution of the Constitution and applicable laws,” Yakubu stated, adding that any constitutional dispute should be resolved by the courts.
The government stressed that until a judicial ruling states otherwise, the Executive remains obligated to safeguard Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability.
Key Provisions of EO9:
- Suspends NNPCL’s collection of management and frontier exploration fees.
- Halts payment of gas flare penalties into the Midstream Gas Infrastructure Fund.
- Clarifies the roles of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
- Establishes an inter-agency implementation committee chaired by the Minister of Finance and Coordinating Minister for the Economy.
