Subscribe
    Demo
    WIN368 Slot Online Login dengan Link Alternatif 88BET Slot Online Login dengan Link Alternatif Yukplay Slot Online Login dengan Link Alternatif
    Politics

    FG Clarifies Claims on Tinubu’s Order Demanding Direct Remittance of Oil and Gas Revenues to Federation Account

    By No Comments3 Mins Read
    • Safiu Kehinde
    The Federal Government has made clarifications over President Bola Tinubu’s order demanding the direct remittance of oil and gas revenues into the Federation account.
    NPO Reported that Tinubu had last week issued the Executive Order in a bid to restore the constitutional revenue entitlements of the Federal, State, and Local Governments, which were taken away in 2021 by the Petroleum Industry Act (PIA).

    The order as declared by the President implied that the Nigeria National Petroleum Company (NNPC) Limited will no longer collect and manage the 30% Frontier Exploration Fund.

    Rather, the 30% profit from oil and gas from production sharing, profit sharing, and risk service contracts currently earmarked for the frontier exploration fund will now be transferred to the Federation Account.

    Also, NNPC Limited will no longer be entitled to the 30% management fee on profit oil and profit gas revenues, which should go to the federation account, amongst others.

    However, the order tagged Executive Order 9 (EO9) had sparked mixed reactions with insinuations that the President is creating a new law out of the constitution.

    Reacting to the claims, Tanimu Yakubu, the Director-General, Budget Office of the Federation and Secretary of the Implementation Committee on Executive Order 9, explained that the order is still in compliance with the 1999 Constitution (as amended).

    Tanimu in a statement issued on Monday said the order is an enforcement constitutional custody of Federation revenues as stated in Section 80 (1) of the constitution.

    He provided further constitutional provisions which affirmed the legality of the order, including the Section 162 that stipulated that revenues accruing to the Federation must be paid into the Federation Account for distribution in accordance with constitutional allocation principles.

    The statement read; “Commentaries suggesting that Executive Order 9 (EO9) amounts to the President “making law” misstate both the Constitution and the fiscal question at issue. EO9 does not create law; it enforces constitutional custody of Federation revenues.
    Section 80(1) of the Constitution (1999, as amended) is mandatory.
    “All revenues or other monies raised or received by the Federation shall be paid into and form one Consolidated Revenue Fund of the Federation.
    “Public revenue cannot lawfully be retained, applied, or warehoused outside constitutional funds. Section 162 complements this rule by requiring revenues accruing to the Federation to be paid into the Federation Account for distribution in accordance with constitutional allocation principles.
    “The order of legality is clear: revenue must first enter constitutionally recognised accounts before it can be appropriated, shared, or spent.
    “EO9 operationalises these provisions in the oil and gas sector by directing direct remittance of petroleum revenues – including royalties, taxes, profit oil and gas, penalties, and related receipts – into constitutionally recognised accounts, and by tightening reconciliation and transparency across collection, custody, and reporting.
    “EO9 does not intrude into legislative competence. Section 60(1) preserves the procedural autonomy of the National Assembly; EO9 does not regulate legislative procedure, amend the Petroleum Industry Act (PIA), or repeal any statute.
    “It is an executive instrument issued under Section 5 to ensure faithful execution of the Constitution and applicable laws.
    “If any party disputes the constitutional validity of EO9, the judiciary remains the proper forum for determination. Pending any judicial pronouncement, the Executive is duty-bound to protect Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability.”
    Spread the love
    Share.

    Safiu Kehinde is a Graduate of Mass Communications. He is passionate about accurate reporting and interested in investigating socio-political issues.

    Related Posts

    Add A Comment

    Comments are closed.