FG defends Executive Order 9, says it enforces revenue remittance

2026-02-25 08:54:08

The Federal Government has defended Executive Order 9 (EO9), stating that it reinforces the constitutional custody of Federation revenues and does not grant the President legislative powers.

This is contained in a statement issued on Monday, February 23, 2026, by Tanimu Yakubu, Secretary of the Implementation Committee on Executive Order 9.

He dismissed claims that the order amounts to the President “making law,” describing such interpretations as a misreading of constitutional and public finance provisions.

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What they are saying

Yakubu referenced Section 80(1) of the Constitution of the Federal Republic of Nigeria, which requires all revenues collected by the Federation to be paid into a single account known as the Consolidated Revenue Fund.

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

The statement added that Section 162 of the Constitution complements this requirement by mandating that revenues accruing to the Federation be paid into the Federation Account for distribution according to constitutional allocation principles.

According to Yakubu, the legal sequence is clear: revenues must first enter constitutionally recognised accounts before they can be appropriated, shared, or spent.

Backstory

Earlier this month, President Bola Tinubu signed Executive Order 9, suspending the collection of management and frontier exploration fees by the Nigerian National Petroleum Company Limited (NNPCL) and directing the full remittance of oil and gas revenues to the Federation Account.

The Federal Ministry of Finance said the move aims to realign oil and gas revenue flows with constitutional provisions, reduce leakages, and improve fiscal transparency, especially amid declining inflows to the Federation Account despite improved oil production and favourable market conditions.

The order also addresses fiscal and structural arrangements introduced under the Petroleum Industry Act (PIA), which commercialised NNPC into a limited liability company.

According to the ministry, some of those arrangements led to off-budget allocations and deductions from Federation revenues.

The directive, however, has drawn criticism from some stakeholders.

More insights

The Federal Government maintains that EO9 operationalises constitutional provisions within the oil and gas sector by mandating direct remittance of petroleum revenues — including royalties, taxes, profit oil and gas, penalties, and related receipts — into constitutionally recognised accounts. It also tightens reconciliation and reporting processes to enhance transparency.

The statement emphasised that the order does not interfere with legislative authority, noting that Section 60(1) safeguards 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.” _

The government added that until a court rules otherwise, the Executive is obligated to safeguard Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability.

What you should know

Executive Order 9: Suspends NNPCL’s collection of management and frontier exploration fees.

Halts the payment of gas flare penalties into the Midstream Gas Infrastructure Fund.

Clarifies responsibilities between the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Establishes an inter-agency implementation committee chaired by the Minister of Finance and Coordinating Minister for the Economy to oversee execution.

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