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 steps from energy experts and petroleum retailers.
According to reports, Nigeria’s oil industry has been uneasy since the President announced the executive order in a statement released by his spokesperson, Bayo Onanuga, last Wednesday.
The decree eliminates the Frontier Exploration Fund and the 30% management charge on profit oil and gas, two sources of income that the Nigerian National Petroleum Company Limited had previously kept.
Additionally, it transfers other revenue streams from the state-owned oil company, like gas flaring penalties, to the federation account.
The Executive Order is anticipated to increase the federation account by around N14 trillion while enhancing the national oil company’s transparency, according to the Federal Government.
Nonetheless, the development has generated discussion among oil and gas sector players, especially on its consequences for the Petroleum sector Act (PIA) 2021. According to reports, the action has also caused ambiguity among the NNPCL’s leadership about its future plans.
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, citing concerns that it may jeopardize the PIA and destroy investor confidence.
Wumi Iledare, an energy specialist and Professor Emeritus of Petroleum Economics, disagreed with PENGASSAN’s position, claiming that the union was misdirecting its efforts.
He had already discussed 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.
The executive order was defended by the Presidency in a statement released by Bayo Onanuga on Monday, stating that it is in accordance with the Nigerian Constitution.
However, Tim Okon, TENO Energy Resources Limited’s managing partner and energy expert, and Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria, both urged the president to call for the National Assembly to amend the PIA as the next step in exclusive interviews on Monday.
Speaking on the subject, Dr. Okon argued that a legislative amendment would have been a better course of action than an executive order.
However, I would also simply say that if the goal is to change a law, we just suggest it to the National Assembly.
The best way to change any law, in my opinion, is to take it before the National Assembly. Simply put, allowing the National Assembly to modify legislation is preferable to issuing executive directives. That’s just my opinion, then.
Laws are made by the National Assembly, which also drafts and amends them. Therefore, he stated that the process of amending the PIA basically involves taking it to the National Assembly.
According to Gillis-Harry, the presidential order is a first step toward a legislative modification to the PIA.
“One of the steps is this. Eventually, the executive orders will push the PIA to the point where the National Assembly will need to erase and restore some of its most damaging and vital contents.
It makes me joyful. I consider Executive Order 9 every day. He remarked, “I am pleased because it is evident that this president is now understanding what is wrong with Nigeria.”
Additionally, he cited ongoing claims of unpaid and unaccounted-for oil earnings, pointing out that data that is accessible to the public shows the extent of financial losses over time.
“If you search for “stolen money” or “lost money in Nigeria,” you’ll be surprised to see how many billions and trillions of dollars are mentioned—specific sums that weren’t sent,” he said.
The Nigerian National Petroleum Company Limited’s management, led by Bayo Ojulari, has reportedly failed to account for N210 trillion in cash that were identified as unaccounted for in audited financial accounts covering the years 2017 through 2023.
The Senate Committee on Public Accounts, led by Aliyu Wadada, has been bringing up the matter since last year.