‘EO on oil, gas remittances into Federation Account lawful’
• It enforces a Constitution, not lawmaking, says DG Budget Office The Federal Government has defended Executive Order 9 (EO9) , saying claims that it allows the President to make
• It enforces a Constitution, not lawmaking, says DG Budget Office
The Federal Government has defended Executive Order 9 (EO9) , saying claims that it allows the President to make laws are based on a misunderstanding of the1999 Constitution and public finance rules.
President Bola Ahmed Tinubu signed the Order for direct remittance of oil and gas revenues directly to the Federation Account a week ago.
The development was followed by a series of commentaries, with some alleging that it not only breaches constitutional provisions but could lead to job losses in the oil and gas sector.
In a statement yesterday by the Director-General of the Budget Office of the Federation, Tanimu Yakubu, the federal government explained that EO9 does not create new laws but simply enforces existing constitutional provisions on how government revenues must be handled.
He added that the Order strengthens reconciliation and transparency across collection, custody and reporting processes.
Yakubu, however, challenged anyone with questions on the legality of the Order to feel free to approach the courts.
“If any party disputes the constitutional validity of EO9, the judiciary remains the proper forum for determination,” he said.
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He maintained that until any court rules otherwise, the Executive arm of government is obligated to safeguard public revenues, respect constitutional supremacy and strengthen fiscal discipline, especially in relation to monthly allocations from the Federation Account, the credibility of the national budget and overall economic stability.
The Budget Office boss explained in the statement that Section 80(1) of the Constitution requires that all revenues collected by the Federation must be paid into a single account known as the Consolidated Revenue Fund.
According to him, this means public money cannot legally be kept, used or stored outside constitutionally recognised accounts.
Yakubu added that Section 162 of the Constitution supports this rule by directing that revenues belonging to the Federation must first be paid into the Federation Account before they can be shared among the three tiers of government.
“The order of legality is clear: revenue must first enter constitutionally recognised accounts before it can be appropriated, shared, or spent,” he said.
Yakubu stated that the Order puts these constitutional requirements into practice in the oil and gas sector by directing that petroleum revenues such as royalties, taxes, profit oil, penalties and other related earnings be paid directly into authorised government accounts.
He added that the Order also strengthens reconciliation and transparency in how such revenues are collected, held and reported.
Yakubu said the directive does not interfere with the powers of the Legislature because Section 60(1) of the Constitution protects the independence of the National Assembly in determining its procedures.
He stressed that EO9 does not regulate parliamentary processes, amend the Petroleum Industry Act or cancel any existing law.
According to him, the Order is an Executive action issued under Section 5 of the Constitution, which gives the President authority to ensure that laws and constitutional provisions are properly carried out.
