The Presidency has pushed back strongly against criticism from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over President Bola Tinubu’s Executive Order 9 of 2026, maintaining that the directive is rooted firmly in the Nigerian Constitution and not an assault on the Petroleum Industry Act (PIA).
The Executive Order, formally titled Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, mandates the direct remittance of petroleum revenues - including royalties, petroleum profit tax, profit oil and gas, penalties and related earnings - into constitutionally recognised government accounts.
The move effectively halts certain revenue deductions by the Nigerian National Petroleum Company Limited (NNPCL) and other agencies before remittance to the Federation Account.
PENGASSAN had staged a protest at the NNPC Towers in Abuja, accusing the President of undermining the operational and financial autonomy granted to NNPCL under the PIA. The union warned that the directive could weaken the company’s capacity to fund its operations and meet statutory obligations such as contributions to the Frontier Exploration Fund for hydrocarbon development in 2026.
However, the Presidency described the protest as premature and based on a misreading of constitutional provisions.
Responding to media inquiries, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the union’s position failed to appreciate the supremacy of the 1999 Constitution over any Act of the National Assembly.
“PENGASSAN is focusing on PIA alone. The President’s action is based on the Nigerian Constitution. PIA is not superior to our Constitution,” Onanuga said.
He explained that the directive draws its authority from Section 5 of the Constitution, which vests executive powers in the President to ensure compliance with constitutional provisions and the implementation of federal laws. He also cited Section 44(3), which vests ownership and control of minerals, mineral oils and natural gas in the Government of the Federation.
According to Onanuga, the Executive Order is designed to restore revenue flows to the Federal, State and Local Governments, which he claimed were weakened by certain deduction mechanisms created under the PIA.
“The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges and fees,” he said, adding that the directive is aimed at plugging leakages and strengthening fiscal accountability.
Also defending the order, the Special Adviser to the President on Media and Public Communications, Sunday Dare, rejected suggestions that EO9 amounts to executive overreach or an attempt to amend the law through the back door.
Quoting Section 80(1) of the Constitution, Dare noted that all revenues raised or received by the Federation must be paid into and form one Consolidated Revenue Fund of the Federation.
He further referenced Section 162, which requires that revenues accruing to the Federation 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,” Dare stated.
He stressed that EO9 does not repeal or amend the PIA and does not encroach on the powers of the National Assembly.
“EO9 does not intrude into legislative competence. It is an executive instrument issued under Section 5 to ensure faithful execution of the Constitution and applicable laws,” he said.
Dare added that any dispute regarding the constitutional validity of the order should be resolved by the courts.
“If any party disputes the constitutional validity of EO9, the judiciary remains the proper forum for determination. Pending any judicial pronouncement, the Executive is duty-bound to protect Federation revenues, uphold constitutional supremacy and strengthen fiscal integrity,” he said.
The Petroleum Industry Act, signed into law in 2021, granted NNPCL operational and financial autonomy, including provisions allowing the company to retain certain revenues for reinvestment before remitting the balance to the Federation Account. Section 54 of the Act exempts NNPCL from the Fiscal Responsibility Act and permits it to operate on commercial principles.
But the Presidency insists that no statutory provision can override explicit constitutional requirements governing revenue collection and remittance.
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