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 course of action from energy experts and petroleum retailers.
According to reports, the president announced the executive order last Wednesday in 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 profitable oil and gas that the Nigerian National Petroleum Company Limited had previously kept.
Additionally, it transfers the state-owned oil company’s other revenue streams, including gas flaring fines, to the federation account.
The Federal Government estimates that the Executive Order will increase the federation account by approximately N14 trillion while enhancing the national oil company’s transparency.
Stakeholders in the oil and gas sector are debating the development, nevertheless, especially in light of its potential effects on the Petroleum Industry Act (PIA) 2021. According to reports, the action has also raised doubts about the NNPCL’s future functioning among its leadership.
Festus Osifo, the 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.
On the other hand, PENGASSAN’s position was attacked by energy expert and Professor Emeritus of Petroleum Economics Wumi Iledare, who claimed that the union was misdirecting its efforts.
He had already described the broad ramifications of the president’s order, but he warned that some of its provisions directly conflict with those of the PIA.
In a statement released on Monday, Bayo Onanuga of the Presidency justified the executive order, stating that it is in accordance with the Nigerian Constitution.
However, 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 argued 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 suggest it to the National Assembly.
Therefore, 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 modify legislation instead of issuing executive orders is just a better strategy. So, they are just my opinions.
“Laws are drafted by the National Assembly, which then revises them. Thus, the process of amending the PIA basically involves taking it to the National Assembly,” he stated.
The presidential order, according to Gillis-Harry, is a first step toward a legislative reform of the PIA.
One of the steps is this. The executive measures will accelerate the process to the point where the National Assembly will need to erase and modify some extremely important and harmful parts of the PIA.
“I am pleased with it. I consider Executive Order 9 on a daily basis. He declared, “I am pleased because it is evident that this president is now understanding what is wrong with Nigeria.”
He also cited ongoing claims of unpaid and unaccounted-for oil earnings, pointing out that the amount of money lost over time is reflected in publicly accessible data.
“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.
According to reports, N210 trillion in cash that were identified as unaccounted for in audited financial records for the years 2017 through 2023 have not yet been accounted for by the management of the Nigerian National Petroleum Company Limited, which is led by Bayo Ojulari.
Since last year, the Senate Committee on Public Accounts, which is chaired by Aliyu Wadada, has brought up the matter.
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