HomeNewsFG Defends Oil Revenue Executive Order

FG Defends Oil Revenue Executive Order

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KEY POINTS


  • The federal government says Executive Order 9 enforces constitutional rules on revenue remittance rather than creating new law.
  • Officials argue the directive ensures all oil and gas earnings go directly into recognised government accounts for transparency.
  • Authorities maintain the order is within presidential powers and can only be challenged legally in court.

The Federal Government has defended the recent executive directive issued by Bola Tinubu, insisting that the order does not amount to law-making but instead enforces existing constitutional provisions governing public revenue.

The order, signed on February 18, mandates the direct remittance of all oil and gas revenues into constitutionally recognised government accounts, particularly the Federation Account.

Critics had argued that the order effectively bypassed legislative authority, but officials say such claims misinterpret both the Constitution and the purpose of the policy.

Budget Office: Order Enforces Existing Constitutional Rules

According to Tanimu Yakubu, director-general of the Budget Office of the Federation, Executive Order 9 simply operationalises constitutional provisions already in force.

He cited Section 80(1) of the 1999 Constitution, which requires all federally generated revenues to be paid into the Consolidated Revenue Fund, stressing that no public funds can legally be kept outside constitutionally designated accounts. He also referenced Section 162, which mandates that all federation revenues be paid into the Federation Account before they are distributed according to allocation formulas.

Yakubu explained that the directive applies these constitutional rules specifically to the oil and gas sector, covering royalties, taxes, profit oil, penalties, and related earnings.

Government officials say the order will strengthen transparency, improve reconciliation of revenue figures, and enhance reporting processes across agencies involved in collecting petroleum revenues.

The administration argues that tighter controls will reduce leakages and ensure accurate accounting before funds are shared among federal, state, and local governments.

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