The Presidency has defended President Bola Tinubu’s Executive Order halting certain revenue deductions by the Nigerian National Petroleum Company and other agencies, saying the directive is anchored in the Nigerian Constitution and does not override the Petroleum Industry Act (PIA).
The Special Adviser to the President on Information and Strategy explained that the PIA, enacted in 2021, cannot supersede the Constitution, which vests executive powers in the President and ownership of national resources in the Federation. The Executive Order, he added, aims to ensure that revenues constitutionally due to the Federal, State, and Local Governments are properly remitted, preventing diversion through statutory deductions.
Critics, including the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), have argued that the Executive Order violates the PIA and could affect operations of the national oil company. However, the Presidency described such reactions as premature, stressing that the directive aligns revenue management with constitutional provisions rather than creating new laws.
Legal experts have weighed in, highlighting the limits of executive power. Senior advocates noted that Executive Orders cannot amend, repeal, or set aside an Act of the National Assembly, and only the judiciary has the authority to declare a law unconstitutional. They emphasized that any dispute over the PIA’s provisions should be settled in court or through legislative amendments, not unilateral executive action.
Despite the debate, some private sector leaders welcomed the Executive Order, saying it promotes transparency, operational clarity, and efficiency in revenue management. They argued that consistent application of the order could enhance investor confidence, improve governance of petroleum revenues, and strengthen the corporate structure of the Nigerian National Petroleum Company, particularly in preparation for potential future public listings.
The controversy underscores ongoing questions about constitutional supremacy, separation of powers, and the proper role of executive instruments in the administration of national resources. While the Presidency insists the order is necessary to safeguard federation revenues, legal authorities stress that its limits are defined by law and judicial oversight
