Stakeholders across Nigeria’s oil and gas sector have expressed divergent views following the issuance of Executive Order 09 by President Bola Ahmed Tinubu, which mandates the remittance of oil revenues to the federation account.
Announced by presidential spokesman Bayo Onanuga, the order discontinues two revenue streams previously retained by the Nigerian National Petroleum Company Limited—the 30% management fee on profit oil and gas and the Frontier Exploration Fund. It also redirects gas flaring penalties and other income sources to the federation account. The Federal Government estimates the move could add about ₦14 trillion while improving transparency at the national oil company.
However, the directive has sparked debate, particularly over its implications for the Petroleum Industry Act (PIA) 2021 and the operational future of NNPCL. The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, warned that the order could undermine the PIA and deter investment, urging its withdrawal. In contrast, energy economist Wumi Iledare criticized the union’s position, arguing that its advocacy was misplaced despite acknowledging the order’s far-reaching implications.
Defending the policy, the Presidency maintained that the order aligns with constitutional provisions. Meanwhile, energy expert Tim Okon, Managing Partner at TENO Energy Resources Limited, argued that amending the PIA through the National Assembly would have been a more appropriate route than executive action.
Similarly, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, described the order as a catalyst toward legislative reform, welcoming efforts to address long-standing revenue leakages.
Concerns persist as NNPCL leadership under Bayo Ojulari faces questions over ₦210 trillion reportedly flagged as unaccounted funds in audited statements from 2017 to 2023—an issue raised by the Senate Committee on Public Accounts, chaired by Aliyu Wadada.
