KEY POINTS
- Presidency insists Tinubu’s Executive Order aligns with constitutional provisions.
- PENGASSAN protests directive, warning of operational and workforce risks for NNPC.
- Government says policy aims to plug revenue leakages and restore federation earnings.
MAIN STORY
The Presidency has defended President Bola Tinubu’s Executive Order halting revenue deductions by the Nigerian National Petroleum Company Limited (NNPC Ltd.) and other agencies, stating that the directive is grounded in constitutional authority.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, said criticism by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) reflected a misunderstanding of constitutional supremacy over statutory legislation.
He explained that while the Petroleum Industry Act (PIA) provides certain operational frameworks, it cannot override provisions of the Nigerian Constitution.
THE ISSUES
The directive has sparked tension between government efforts to improve revenue remittances and labour concerns about operational autonomy, financial sustainability, and workforce security within the national oil company.
WHAT’S BEING SAID
Onanuga described PENGASSAN’s reaction as premature, noting that the Executive Order derives its authority from Section 5 of the 1999 Constitution, which vests executive powers in the President.
He also cited Section 44(3) of the Constitution, which assigns ownership and control of mineral resources to the Federal Government.
According to him, the order is intended to restore constitutionally mandated revenue flows to federal, state, and local governments, which he said were weakened by provisions in the PIA allowing deductions and charges before remittance.
“The PIA created structural and legal channels through which substantial Federation revenues are lost,” he said.
PENGASSAN had earlier protested at the NNPC Towers in Abuja, accusing the President of undermining the operational independence of NNPC Ltd. and warning that the directive could limit the company’s ability to fund operations and meet statutory obligations, including contributions to exploration initiatives.
WHAT’S NEXT
The Presidency said implementation of the Executive Order would continue as part of broader reforms to strengthen revenue accountability and reduce leakages in the oil and gas sector.
Labour groups, however, have indicated they may pursue further action if their concerns are not addressed through dialogue.
BOTTOM LINE
The dispute highlights a growing policy clash between fiscal reform priorities and industry stakeholders’ concerns over operational autonomy, signalling the need for sustained engagement to balance constitutional obligations with sector stability.
