Following the issuing of Executive Order 09, which requires the repatriation of oil income to the federation account, President Bola Ahmed Tinubu has received advice on the next step from energy experts and petroleum retailers.
According to reports, the executive order was made by the president last Wednesday through a statement released by his spokesperson, Bayo Onanuga. This action has caused unrest in Nigeria’s oil industry.
The decree eliminates the Frontier Exploration Fund and the 30 percent management charge on profit oil and gas, two sources of income that the Nigerian National Petroleum Company Limited had previously kept.
It also transfers the state-owned oil company’s other revenue streams, including gas flaring penalties, to the federation account.
In addition to increasing transparency inside the national oil business, the Executive Order is anticipated to contribute over N14 trillion to the federation account, according to the Federal Government.
Nevertheless, the development has generated discussion among oil and gas sector players, especially over its consequences for the Petroleum sector Act (PIA) 2021. Regarding the NNPCL’s future operations, the action has apparently also caused doubt among its leadership.
Festus Osifo, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), urged President Tinubu to revoke the executive order last week, cautioning that it might jeopardize the PIA and destroy investor confidence.
Wumi Iledare, an energy specialist and Professor Emeritus of Petroleum Economics, on the other hand, attacked PENGASSAN’s position, claiming that the union was misdirecting its efforts.
He had already described the broad ramifications of the president’s order, but he issued a warning that some of its provisions clearly conflict with those of the PIA.
In a statement released Monday, Bayo Onanuga of the Presidency justified the executive order, stating that it is in accordance with the Nigerian Constitution.
But in exclusive interviews on Monday, Tim Okon, the managing partner of TENO Energy Resources Limited and an energy expert, and Billy Gillis-Harry, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria, urged the president to take the next step and ask the National Assembly to amend the PIA.
Speaking on the subject, Dr. Okon stated that a legislative amendment to the statute would have been a better course of action than an executive order.
However, I would also say that if the goal is to change a law, we simply submit a proposal to the National Assembly.
Accordingly, I believe that going to the National Assembly to get a legislation altered is the best way to change it. Allowing the National Assembly to make changes to laws instead of issuing presidential directives is just a better strategy. So they are just my opinions.
The National Assembly drafts and then revises laws. Therefore, the main way to reform the PIA is to present it to the National Assembly, he stated.
Gillis-Harry, for his part, characterized the executive action as a first step toward a legislative change to the PIA.
“This is a step. The executive measures will speed up the process to the point where the National Assembly will need to delete and fix certain really important and harmful portions of the PIA.
“I am pleased with it. I think about Executive Order 9 every single day. I am pleased because it is evident that this president is now aware of Nigeria’s problems,” he remarked.
He also cited ongoing claims of unpaid and unaccounted-for oil revenues, pointing out that data that is accessible to the public shows how much money has been lost over time.
“You will be surprised at how many billions and trillions—specific amounts that were not remitted—are mentioned if you Google ‘stolen money’ or ‘missing money in Nigeria,’” he said.
The management of the Nigerian National Petroleum Company Limited, led by Bayo Ojulari, has reportedly failed to account for N210 trillion that was identified as unexplained funds in audited financial records covering the years 2017 through 2023.
Since last year, the Senate Committee on Public Accounts, which is chaired by Aliyu Wadada, has brought up the subject.
