Presidency fires back at PENGASSAN, insists Tinubu’s order upholds constitution over PIA

The Presidency on Monday strongly defended President Bola Tinubu’s Executive Order 9 of 2026, dismissing criticism from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and insisting that the directive enforces constitutional supremacy over the Petroleum Industry Act (PIA).

Last Wednesday, Tinubu signed Executive Order 9, formally titled the Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity. The order mandates the direct remittance of petroleum revenues – including royalties, taxes, profit oil, profit gas, penalties and other related receipts – into constitutionally recognised government accounts.

The directive effectively stops the Nigerian National Petroleum Company Limited (NNPCL) and other agencies from making certain revenue deductions before remitting funds to the Federation Account.

PENGASSAN had on Friday staged a protest at the NNPC Towers in Abuja, accusing the President of undermining the operational independence granted to NNPCL under the PIA. The union warned that the order could cripple the company’s ability to fund operations and meet statutory obligations, including contributions to the Frontier Exploration Fund earmarked for hydrocarbon exploration in 2026.

But the Presidency described the protest as a “knee-jerk reaction” rooted in a misunderstanding of constitutional provisions.

Responding to inquiries, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the union focused narrowly on the PIA without recognising the supremacy of the 1999 Constitution.

“PENGASSAN is focusing on PIA alone. The President’s action is based on the Nigerian Constitution, which PIA violates in allowing the deductions that the President has now stopped. PIA is not superior to our Constitution,” Onanuga stated.

He argued that the Executive Order derives its authority from Section 5 of the Constitution, which vests executive powers in the President to ensure the maintenance of the Constitution and faithful execution of federal laws. He also cited Section 44(3), which vests ownership and control of minerals, mineral oils and natural gas in the Government of the Federation.

According to Onanuga, the directive seeks to restore revenues constitutionally due to the Federal, State and Local Governments, which he said were eroded by provisions introduced under the PIA in 2021.

“The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges and fees,” he said.

Also weighing in, the Special Adviser to the President on Media and Public Communications, Sunday Dare, rejected suggestions that EO9 amounts to executive overreach or lawmaking by fiat.

In a post on his official X handle, Dare quoted Section 80(1) of the Constitution, which mandates that “all revenues or other moneys raised or received by the Federation shall be paid into and form one Consolidated Revenue Fund of the Federation.”

He further referenced Section 162, which requires that revenues accruing to the Federation be paid into the Federation Account for distribution in line 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,” Dare stated.

He explained that EO9 operationalises these constitutional provisions within the oil and gas sector by mandating direct remittance of petroleum revenues and strengthening reconciliation, transparency and reporting processes.

Dare stressed that the executive order does not amend or repeal the Petroleum Industry Act, nor does it infringe on the powers of the National Assembly.

“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,” he said.

He maintained that the directive was issued strictly under Section 5 of the Constitution to ensure faithful execution of existing 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,” Dare added.

The Petroleum Industry Act, signed into law in August 2021 by former President Muhammadu Buhari, granted NNPCL significant operational and financial autonomy, including the right to retain certain revenues for reinvestment before remitting proceeds to the Federation Account. Section 54 of the Act exempts the company from the Fiscal Responsibility Act and allows it to operate on commercial terms outside some government financial regulations.

However, the Presidency insists that no Act of the National Assembly can override constitutional provisions governing revenue management.