Oil, Gas: Executive Order constitutional constancy, no longer government overreach – Presidency

Oil, Gas: Executive Order Constitutional Constancy, No Longer Government Overreach – Presidency

Introduction
The Presidency has reaffirmed that Executive Order 9 (EO9) on oil and gas revenues is fully constitutional and does not constitute government overreach. This clarification comes amid ongoing debates about the scope of executive authority in Nigeria’s oil and gas sector.

Key Points
– Executive Order 9 (EO9) is constitutional and does not create new legislation
– EO9 enforces constitutional custody of Federation revenues
– All revenues must be paid into the Consolidated Revenue Fund of the Federation
– EO9 operationalizes existing constitutional provisions for oil and gas income
– The order does not interfere with legislative competence

Background
The controversy surrounding Executive Order 9 stems from concerns about executive authority in managing Nigeria’s oil and gas revenues. The order was issued to strengthen fiscal integrity and ensure proper handling of petroleum revenues.

Analysis
Constitutional Framework
Section 80(1) of the Nigerian Constitution (1999, as amended) mandates that all revenues or other monies raised or received by the Federation must be paid into and form one Consolidated Revenue Fund of the Federation. Section 162 further requires revenues accruing to the Federation to be paid into the Federation Account for distribution according to constitutional allocation principles.

Executive Order 9 Operationalizes Constitutional Provisions
Executive Order 9 operationalizes these constitutional provisions specifically for oil and gas revenues by directing direct remittance of petroleum revenues – including royalties, taxes, profit oil and gas, penalties, and related receipts – into constitutionally recognized accounts. The order also tightens reconciliation and transparency across collection, custody, and reporting.

Scope and Limitations
EO9 does not create new legislation but rather enforces existing constitutional provisions. It does not interfere with legislative competence as Section 60(1) preserves the procedural autonomy of the National Assembly. The order does not control legislative process, amend the Petroleum Industry Act (PIA), or repeal any statute.

Legal Authority
As an executive tool issued under Section 5 of the Constitution, EO9 is designed to ensure faithful execution of the Constitution and applicable laws. It represents the executive’s duty to protect Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability.

Practical Advice
For Stakeholders in the Oil and Gas Sector
– Ensure compliance with direct remittance requirements
– Implement robust reconciliation and transparency measures
– Maintain accurate records of petroleum revenues
– Cooperate with oversight mechanisms established under EO9

For Government Agencies
– Strengthen monitoring and enforcement mechanisms
– Enhance coordination between revenue collection agencies
– Improve reporting and transparency in revenue management
– Prepare for potential judicial review if challenges arise

For Citizens and Civil Society
– Monitor implementation of EO9
– Support transparency initiatives in the oil and gas sector
– Engage in constructive dialogue about fiscal governance
– Utilize appropriate channels for addressing concerns

FAQ

Q: Does Executive Order 9 create new laws?
A: No, EO9 does not create legislation. It enforces existing constitutional provisions regarding Federation revenues.

Q: Does EO9 interfere with legislative authority?
A: No, EO9 does not interfere with legislative competence. Section 60(1) of the Constitution preserves the National Assembly’s procedural autonomy.

Q: What happens if someone disputes the constitutional validity of EO9?
A: The judiciary remains the proper forum for determining constitutional validity. Pending any judicial pronouncement, the Executive is duty-bound to protect Federation revenues and uphold constitutional supremacy.

Q: How does EO9 affect oil and gas revenue management?
A: EO9 directs direct remittance of petroleum revenues into constitutionally recognized accounts and tightens reconciliation and transparency across collection, custody, and reporting.

Conclusion
Executive Order 9 represents a constitutional approach to strengthening fiscal integrity in Nigeria’s oil and gas sector. By operationalizing existing constitutional provisions, the order aims to enhance transparency, accountability, and proper management of petroleum revenues. The Presidency’s clarification that EO9 is constitutional and does not constitute government overreach should help address concerns and facilitate smoother implementation of the order.

Sources
– Presidency statement on Executive Order 9
– Nigerian Constitution (1999, as amended)
– Petroleum Industry Act (PIA)
– Budget Office of the Federation communications

Note: This article is based on official statements and constitutional provisions. For specific legal advice or interpretation, consult qualified legal professionals.