FG Defends Executive Order on Direct Remittance of Oil, Gas Revenues, Says it’s Constitutional

Pat Stevens/

The Director-General of the Budget Office of the Federation, Tanimu Yakubu, has defended the Federal Government’s Executive Order 9, saying the directive is meant to ensure that revenues from Nigeria’s oil and gas sector are paid directly into constitutionally recognised accounts.

Yakubu said criticisms suggesting that the President was attempting to make new laws through the order were based on a misunderstanding of the Constitution and the purpose of the directive.

“Commentaries suggesting that Executive Order 9 amounts to the President ‘making law’ misstate both the Constitution and the fiscal question at issue,” he said in a statement on Monday. “Executive Order 9 does not create law; it enforces constitutional custody of Federation revenues.”

According to him, the order simply reinforces existing constitutional provisions on how government revenue must be handled.

“Section 80(1) of the Constitution is mandatory. All revenues or other monies raised or received by the Federation shall be paid into and form one Consolidated Revenue Fund of the Federation,” Yakubu said. “Public revenue cannot lawfully be retained, applied, or warehoused outside constitutional funds.”

He added that another key constitutional provision also requires proper remittance before funds can be shared among governments.

“Section 162 complements this rule by requiring revenues accruing to the Federation to be paid into the Federation Account for distribution in accordance with constitutional allocation principles,” he explained.

Yakubu said the implication is straightforward.
“The order of legality is clear. Revenue must first enter constitutionally recognised accounts before it can be appropriated, shared, or spent.”

The Budget Office boss explained that the directive is particularly targeted at Nigeria’s petroleum sector, which accounts for a significant share of public income.

“Executive Order 9 operationalises these provisions in the oil and gas sector by directing direct remittance of petroleum revenues, including royalties, taxes, profit oil and gas, penalties, and related receipts, into constitutionally recognised accounts,” he said.

He added that the order also seeks to improve transparency and accountability in the handling of petroleum income by tightening reconciliation processes and reporting across relevant agencies.

Yakubu rejected claims that the directive bypasses lawmakers or attempts to amend existing legislation such as the Petroleum Industry Act.

“Executive Order 9 does not intrude into legislative competence,” he said. “It does not regulate legislative procedure, amend the Petroleum Industry Act, or repeal any statute.”

According to him, the directive is an administrative measure issued under executive powers provided by the Constitution to ensure that existing laws are faithfully implemented.

He also said anyone who believes the order is unconstitutional has the option of challenging it in court.

“If any party disputes the constitutional validity of Executive Order 9, the judiciary remains the proper forum for determination,” Yakubu stated.

Until such a decision is made, he said the government has a responsibility to safeguard public revenue.

“Pending any judicial pronouncement, the Executive is duty-bound to protect Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability.”

The debate comes amid ongoing concerns over transparency in Nigeria’s oil revenue management and the impact of remittance practices on monthly allocations shared among the federal, state, and local governments.