Tinubu's EO9 on Oil & Gas Revenue Remittance is Constitutional, Enforces Existing Provisions — Budget Office DG Tanimu Yakubu

 

The Executive Order No. 9 (EO9) signed by President Bola Tinubu, mandating direct remittance of oil and gas revenues into the Federation Account, is fully constitutional, according to the Director-General of the Budget Office of the Federation, Tanimu Yakubu.

In a statement issued on Monday in Abuja, Yakubu—who also serves as Secretary of the EO9 Implementation Committee—defended the order against criticisms that it amounts to the President "making law." He described such claims as a misinterpretation of both the Constitution and fiscal principles.

Yakubu emphasized that EO9 does not create new legislation but enforces existing constitutional provisions on revenue management. Key anchors include:

Section 80(1) of the 1999 Constitution (as amended), which mandates that all revenues raised or received by the Federation must be paid into the Consolidated Revenue Fund (a single, recognized account) before any appropriation, sharing, or spending.

Section 44(3), which vests ownership, control, and derivative rights over minerals, mineral oils, and natural gas in the Federal Government.

He stated: “The order of legality is clear: revenue must first enter constitutionally recognised accounts before it can be appropriated, shared, or spent.”

EO9 specifically targets the oil and gas sector by requiring direct remittance of petroleum revenues—including royalties, taxes, profit oil and gas, penalties, and related receipts—into these constitutional accounts. It also enhances reconciliation, transparency, and reporting across collection, custody, and allocation processes.

The order addresses perceived revenue leakages under the Petroleum Industry Act (PIA) of 2021, such as the 30% management fees and Frontier Exploration Fund deductions previously handled by the Nigerian National Petroleum Company Limited (NNPCL). These are now redirected or suspended to ensure fuller inflows to the Federation Account for federal, state, and local governments.

Yakubu argued that EO9 operationalizes constitutional requirements in the sector, issued under the President's executive authority in Section 5 to ensure laws are faithfully executed. The Presidency and other officials have echoed this, framing the directive as a safeguard for public revenues rather than executive overreach.

This development follows the signing of EO9 last week, aimed at realigning revenue flows, curbing waste, eliminating duplicative structures, and boosting federation entitlements eroded since the PIA's implementation.