ABUJA — Energy experts and petroleum stakeholders have advised President Bola Ahmed Tinubu to involve the National Assembly in amending the Petroleum Industry Act (PIA) following the issuance of Executive Order 09, which mandates the remittance of oil revenues to the federation account.
The executive order, announced last Wednesday by the President through his spokesman Bayo Onanuga, ends two revenue streams previously retained by the Nigerian National Petroleum Company Limited (NNPCL): the 30 percent management fee on profit oil and gas, and the Frontier Exploration Fund. Gas flaring penalties and other income sources of the state-owned firm are now directed to the federation account.
The Federal Government says the move is expected to add about N14 trillion to the federation account and improve transparency within the NNPCL. However, the order has sparked debate over its implications for the 2021 Petroleum Industry Act and created uncertainty about the company’s future operations.
Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), called on President Tinubu to withdraw the executive order, warning it could undermine the PIA and deter investors. In contrast, energy expert Prof. Wumi Iledare criticized PENGASSAN’s stance, noting that while the order has wide-ranging effects, certain provisions intersect directly with the PIA.
In exclusive interviews with Newsmen, Tim Okon, Managing Partner of TENO Energy Resources, and Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, urged the President to take the next step by formally seeking amendments to the PIA through the legislature.
Dr. Okon emphasized that “the preferred route to amending any law is to go to the National Assembly…they draft and amend laws. Executive orders should not replace legislative processes.”
Gillis-Harry described Executive Order 09 as a catalyst for legislative action, highlighting persistent issues of unremitted and missing oil revenues. “This is one of the steps…clearly it shows that this president is realizing what is wrong with Nigeria,” he said, noting that publicly available reports reveal billions of dollars in unaccounted funds.
The leadership of NNPCL, headed by Bayo Ojulari, has yet to account for N210 trillion flagged in audited statements from 2017 to 2023, an issue raised by the Senate Committee on Public Accounts chaired by Aliyu Wadada.
