Stakeholders in the oil and gas industry have commended President Bola Tinubu’s Executive Order on oil and gas remittances, describing it as a decisive fiscal reform. In separate interviews with the News Agency of Nigeria (NAN) in Lagos on Thursday, experts noted that the decision signals one of the most significant fiscal interventions since the enactment of the Petroleum Industry Act (PIA).
However, these stakeholders cautioned that the lasting impact of the order would depend heavily on constitutional alignment and legislative clarity.
Prof. Wumi Iledare, Professor Emeritus of Petroleum Economics and Policy Research, described the move as a legitimate and timely public finance reform aimed at strengthening accountability. He explained that the order seeks to reduce discretionary retention of oil revenues and improve statutory remittances to the three tiers of government by ensuring royalties and taxes go directly into the Federation Account.
Despite his praise, Iledare raised reservations, noting that some aspects of the order intersect directly with statutory provisions of the PIA. He warned that instruments like the Frontier Exploration Fund and the Midstream and Downstream Gas Infrastructure Fund were created by the National Assembly, and substantive alterations to them may require legislative amendments to guarantee institutional certainty and constitutional coherence.
Echoing these concerns, Dr. Ayodele Oni, Partner and Chair of the Energy & Natural Resources Practice Group at Bloomfield Law, highlighted the procedural debate surrounding the reform. While he acknowledged that Sections 80 and 162 of the Constitution support paying revenues into the Federation Account, he questioned whether such changes should be implemented solely through executive action rather than through National Assembly amendments to the PIA.
Oni emphasized that if provisions are deemed unconstitutional, it is for the judiciary to nullify them and the legislature to correct them. He underscored that existing Production Sharing Contract (PSC) frameworks are established by parliamentary law and require legislative backing for any substantive modification.
Both experts concluded that for the reforms to be sustainable, they must be anchored in clear legal principles. Iledare questioned if the order is a prelude to a formal amendment of the PIA, stressing that reforms focusing narrowly on revenue enhancement without strengthening governance effectiveness might leave structural weaknesses in place.
Oni added that while the order may incentivize operational efficiency for NNPC Limited in the short term, its long-term success hinges on a predictable governance mechanism that aligns the executive’s directives with the country’s legislative framework.
 in Lagos on Thursday, experts noted that the decision signals one of the most significant fiscal interventions since the enactment of the Petroleum Industry Act (PIA).){kind=link}