Energy Expert Says Petroleum Industry Act Violates Constitution, Backs Tinubu’s Executive Order on Oil Revenue Remittance

Abuja, Nigeria – Fresh debate has erupted over Nigeria’s oil revenue management after energy expert Nick Agule argued that the Petroleum Industry Act (PIA) conflicts with the 1999 Constitution, backing President Bola Tinubu’s recent Executive Order aimed at enforcing stricter remittance of oil and gas revenues to the Federation Account.

Speaking on Arise Television’s Morning Show, Agule said the President’s decision to sign Executive Order 9 was a constitutional safeguard designed to ensure that revenues from the Nigerian National Petroleum Company Limited (NNPCL) are properly paid into the Federation Account.

Executive Order 9 and Oil Revenue Reform

President Tinubu signed the Executive Order to strengthen transparency in Nigeria’s oil and gas sector, eliminate duplicative structures, and prevent revenue leakages. The directive seeks to redirect resources more efficiently for national development while reinforcing constitutional provisions on revenue allocation.

Agule defended the move, stating that the Constitution mandates that all revenues accruing to the Federation must be paid into the Federation Account.

“The constitution states all Federation revenue goes to the Federation Account. But the 2021 PIA kidnapped these funds on their way to the Federation Account, putting them beyond government oversight,” he said.

According to him, the President’s action restores constitutional order and ensures accountability in the management of oil proceeds.

PIA Under Renewed Scrutiny

The Petroleum Industry Act, enacted in 2021 to reform Nigeria’s oil and gas sector, has faced criticism from some analysts who argue that certain provisions grant excessive operational autonomy to NNPCL.

Agule maintained that the Executive Order aligns with constitutional requirements and strengthens government oversight over national oil revenues.

“The President, in deciding to issue Executive Order 9, is standing by the constitution,” he added.

The development is expected to intensify discussions among legal experts, policymakers, and stakeholders in the oil and gas industry over the balance between sector reforms and constitutional compliance.