No new law created on oil remittances, FG replies critics

By Uche Usim

The Federal Government has pushed back against claims that President Bola Tinubu is usurping legislative powers through Executive Order 9 (EO9), insisting the directive merely enforces constitutional provisions on how oil and gas revenues should be handled.

On February 18, signed EO9, ordering the direct remittance of all oil and gas revenues into constitutionally recognised accounts, particularly the Federation Account. But critics have argued that the move amounts to the President “making law” by executive fiat. The government says that claim is misplaced.

In a statement on Monday, Director-General of the Budget Office of the Federation, Tanimu Yakubu, dismissed the criticism as a misunderstanding of both the Constitution and the fiscal issues at stake.

“Commentary suggesting that Executive Order 9 (EO9) amounts to the President ‘making law’ misstates both the Constitution and the fiscal question at issue. EO9 does not create law; it enforces constitutional custody of Federation revenues,” Yakubu said.

Citing Section 80(1) of the 1999 Constitution (as amended), he stressed that all revenues raised or received by the Federation must be paid into and form one Consolidated Revenue Fund of the Federation.

“Section 80(1) of the Constitution (1999, as amended) is mandatory: all revenues or other moneys 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,” the statement read.

He added that Section 162 reinforces this position by requiring revenues accruing to the Federation to be paid into the Federation Account before distribution.

“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.”

Yakubu explained that EO9 simply operationalises these constitutional provisions within the oil and gas sector by mandating the direct remittance of petroleum revenues — including royalties, taxes, profit oil and gas, penalties and related receipts — into recognised government accounts.

According to him, the order also strengthens reconciliation and transparency across collection, custody and reporting processes. “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,” he said. “If any party disputes the constitutional validity of EO9, the judiciary remains the proper forum for determination.”

Pending any court ruling, Yakubu maintained that the executive arm remains duty-bound to safeguard federation revenues, uphold constitutional supremacy and strengthen fiscal integrity for FAAC distributions, budget credibility and overall macroeconomic stability.