Legal experts and stakeholders are weighing in on President Bola Tinubu’s recent executive order that halts revenue deductions by the Nigerian National Petroleum Company Limited and other agencies, highlighting tensions between presidential authority and legislative supremacy under Nigeria’s 1999 Constitution.
The directive, aimed at curbing what the administration views as excessive deductions from oil and gas revenues, has drawn criticism from the Petroleum and Natural Gas Senior Staff Association of Nigeria, which claims it violates the Petroleum Industry Act. In response, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, has defended the move, asserting that detractors are misreading the constitutional order of laws.
Adding to the discourse, Senior Advocate of Nigeria Kemi Pinheiro, in a statement issued on Tuesday, clarified the scope of presidential powers. Pinheiro referenced Section 315 of the 1999 Constitution, which grants the President, as the “appropriate authority,” the ability to modify existing laws to align them with constitutional provisions. He quoted the section directly: “(1) Subject to the provisions of this Constitution, an existing law shall have effect with such modifications as may be necessary to bring it into conformity with the provisions of this Constitution and shall be deemed to be – (a) an Act of the National Assembly to the extent that it is a law with respect to any matter on which the National Assembly is empowered by this Constitution to make laws; and… (2) The appropriate authority may at any time by order make such modifications in the text of any existing law as the appropriate authority considers necessary or expedient to bring that law into conformity with the provisions of this Constitution.”
Pinheiro further cited Subsection 4: “In this section, the following expressions have the meanings assigned to them, respectively – (a) ‘appropriate authority’ means – (i) the President, in relation to the provisions of any law of the Federation.” This, he argued, empowers the President to make amendments for constitutional conformity.
However, Pinheiro emphasised limitations, stating, “An executive order cannot override an Act of Parliament (Act of the National Assembly) under the Constitution of the Federal Republic of Nigeria 1999 (as amended).” He explained that such orders typically direct Ministries, Departments, and Agencies to implement or enforce policies. “I understand Executive Order to be a binding order or directive issued by the President of FRN or a Governor of a State in Nigeria,” Pinheiro said. “The order is usually issued to the executive arm of government, the MDAs, to implement policies and enforce the existing laws. Executive orders are not expressly stated in the CFRN, 1999. However, they carry the force of law and are often used for administrative efficiency.”
He added, “An Act of the National Assembly is a law passed by both the Senate and House of Representatives, and the same is assented to by the President. It is, therefore, imperative to note that the National Assembly is saddled with the responsibility to make law (Section 4 of the CFRN 1999 is apposite). This, therefore, means that an executive order, which is not even a law, cannot outplay an Act of Parliament.”
Pinheiro grounded his view in constitutional supremacy, referencing Section 1(3): “The above could find its stand on the supremacy of our constitution, particularly Section 1(3) of the CFRN 1999.” He concluded, “Finally, even if an Act of the National Assembly violates the provision of Section 1(3) of the CFRN, it ought to be declared null and void, as in the case of some provision of the Petroleum Act.”
The executive order comes amid broader efforts to reform Nigeria’s oil sector, a cornerstone of the economy that accounts for over 90 percent of foreign exchange earnings and about 70 percent of government revenue, according to data from the Central Bank of Nigeria and the Organisation of Petroleum Exporting Countries. Historical mismanagement has plagued the industry, with reports from the Nigeria Extractive Industries Transparency Initiative estimating losses of over $16 billion due to opaque practices between 2005 and 2019 alone. The Petroleum Industry Act of 2021 sought to address these by unbundling the NNPC into a commercial entity, but implementation has faced hurdles, including disputes over revenue allocation.
Executive orders in Nigeria trace back to colonial-era precedents but gained prominence post-1999 with the return to democracy. Under Section 5 of the Constitution, the President holds executive powers, yet these are checked by legislative oversight. Past controversies include former President Muhammadu Buhari’s 2018 order on asset recovery, which critics argued bypassed the National Assembly, and earlier directives under Olusegun Obasanjo on fuel subsidies that led to court challenges. Judicial records from the Supreme Court, such as in the 2002 case of Attorney-General of Abia State v. Attorney-General of the Federation, affirm that executive actions must not infringe on legislative domains, reinforcing the separation of powers enshrined in Sections 4, 5, and 6.
In a related development, the Arewa Think Tank has urged President Tinubu to incorporate the Revenue Mobilisation, Allocation and Fiscal Commission into the order’s implementation framework. In a statement on Tuesday signed by its convener, Muhammad Yakubu, the group praised the directive as “a bold and timely intervention.” Yakubu said, “We commend President Bola Tinubu for this courageous and patriotic executive order aimed at restoring transparency and accountability in the oil and gas sector. This is a step in the right direction for strengthening the federation account and ensuring that revenues due to all tiers of government are protected.”
The group highlighted an apparent oversight, noting that the RMAFC, mandated under Section 162 of the Constitution to monitor Federation Account accruals and disbursements, was omitted from the implementation committee. “It may have been an oversight, but we respectfully appeal to Mr President to include the Revenue Mobilisation, Allocation and Fiscal Commission in the Executive Order’s implementation committee he has just established,” Yakubu stated. He added, “The commission’s statutory mandate makes it a critical stakeholder in any reform that directly affects the Federation Account. The inclusion of RMAFC will strengthen the credibility, transparency and institutional balance of the implementation process. As the body is constitutionally saddled with monitoring revenue accruals and disbursement, its participation is indispensable.”
Yakubu further stressed, “Broad-based institutional collaboration would ensure that the objectives of the executive order are fully realised. Eliminating leakages, curbing excessive deductions and repositioning key institutions strictly along commercial lines would require the involvement of all relevant constitutional bodies.”
This debate unfolds alongside other sector updates. The Dangote Refinery has signed a deal to distribute 65 million litres of petrol, a move expected to ease supply constraints in a market where Nigeria, despite being Africa’s largest oil producer, imports over 80 percent of its refined products, per Nigerian Midstream and Downstream Petroleum Regulatory Authority figures. In security matters, President Tinubu has appointed a new official, Disu, in a pre-2027 boost, prompting the retirement of Deputy Inspectors-General. Meanwhile, the Independent National Electoral Commission has allocated N395 million for electronic transmission in its N873 billion budget proposal, amid ongoing calls for electoral reforms following disputes in the 2023 polls.
Nigeria’s revenue-sharing formula, rooted in the 1960 Independence Constitution and refined through decrees like the 1970 Revenue Allocation Decree under military rule, has long been contentious. The 1999 Constitution’s Section 162 establishes the Federation Account, distributing funds based on principles like population (estimated at 40 percent weight) and equality of states (30 percent), but oil-producing states receive a 13 percent derivation, leading to annual disbursements exceeding N10 trillion in recent years, as per RMAFC reports. Past audits, including a 2012 probe by the House of Representatives revealing N3.3 trillion in unremitted oil revenues, underscore persistent challenges. As the Tinubu administration pushes for fiscal discipline, the order’s legal standing could set precedents for future executive-legislative interactions in Africa’s most populous nation.
