Executive Order 9 Sparks Legal Storm Over Oil Revenue Control
Executive Order 9: Stakeholders Demand Clarity, Warn of Legal Fallout
THE controversy surrounding President Bola Tinubu’s Executive Order 9 continues to deepen, as oil and gas stakeholders, legal practitioners and policy experts question its legality and implications for Nigeria’s petroleum sector.
Signed on 18 February 2026, the directive mandates that all revenues from the oil and gas sector be remitted directly into the Federation Account. The order effectively alters existing revenue management structures under the Petroleum Industry Act (PIA), which grants significant operational and financial autonomy to the Nigerian National Petroleum Company Limited (NNPCL).
“A Nullity in Law” – Onovo
Chief Martin Onovo, oil and gas stakeholder and former presidential candidate of the National Conscience Party (NCP), described the Executive Order as a violation of the PIA.
Speaking in Lagos, Onovo argued that an executive directive cannot override an Act of Parliament. According to him, any change to the fiscal framework governing the NNPCL must be done through legislative amendment, not executive fiat.
He accused the ruling All Progressives Congress (APC) of policy inconsistency and warned that the order could face constitutional challenges in court.
“The PIA outlines the autonomy and fiscal framework of the NNPCL. An Executive Order cannot legally nullify statutory provisions,” he said.
Fears Over Host Communities and Investor Confidence
Chief Emeka Charles Kalu, President of the Eck Foundation, also expressed concern that unilateral fiscal adjustments could undermine legislative authority and disrupt constitutional balance.
He warned that host oil-producing communities could face uncertainty, particularly regarding funding under the Host Community Development Trust framework established by the PIA. According to him, stability and predictability remain critical for communities that rely on oil revenues for development projects.
Barrister Olalekan Ojo, Managing Partner at Platinum & Taylor Hill LP, echoed similar sentiments, noting that executive orders are subordinate to legislation. He said where inconsistencies arise, statutory law prevails.
“Ultimately, the courts may be called upon to interpret the Order’s compatibility with the PIA,” Ojo said.
Government’s Rationale: Transparency and Revenue Boost
However, some stakeholders see merit in the directive.
Barrister Emeka Iheonu explained that the Order—officially titled the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues—seeks to eliminate certain deductions previously retained by the NNPCL, including management fees and contributions to the Frontier Exploration Fund.
He said the measure aims to boost transparency, curb revenue leakages and increase allocations to federal, state and local governments. Projections suggest the move could yield trillions of naira in additional remittances.
Professor John Ebhomien, an economist and chieftain of the APC, acknowledged that while the Order challenges aspects of the PIA, it may improve federal revenue inflows. However, he cautioned that the NNPCL could face liquidity constraints and reduced operational flexibility.
Call for Legislative Backing
Several analysts recommended that the Executive Order be forwarded to the National Assembly for legislative endorsement to avoid prolonged legal disputes.
Dr. Victor Mathew, a public affairs commentator, said while the NNPCL’s track record raises concerns about transparency, the proper route remains amendment of the PIA rather than executive override.
As debate intensifies, observers agree on one point: the final word on Executive Order 9 may ultimately come from the courts, with far-reaching implications for Nigeria’s oil revenue governance framework.
