By Saidu Abubakar
Professor Emeritus Wumi Iledare, the Chair of Oil, Gas, and Energy Policy Forum as well as the Executive Director of Emmanuel Egbogah Foundation, has carefully reviewed the recent Executive Order issued by President Bola Ahmed Tinubu directing the restructuring of oil and gas revenue remittances to the Federation Account.
In a response he personally signed and issued in Abuja, Prof. Iledare said that the Order represents a significant fiscal intervention within Nigeria’s petroleum governance framework and signals a renewed effort to strengthen revenue transparency, reduce discretionary retention, and improve statutory remittances to the three tiers of government.
PEWI acknowledges the administration’s stated objectives — safeguarding public revenues, curbing inefficiencies, and enhancing fiscal discipline — particularly in a period of budgetary strain and debt sustainability concerns.
Valuechain reports the Prof as also responding further that “Strengthening remittance accountability and improving visibility of petroleum inflows to the Federation Account are legitimate public finance priorities.”
H͟o͟w͟e͟v͟e͟r͟,̲ t͟h͟e͟ i͟n͟i͟t͟i͟a͟t͟i͟v͟e͟ n͟o͟t͟e͟s͟ t͟h͟a͟t͟ c͟e͟r͟t͟a͟i͟n͟ a͟s͟p̲e͟c͟t͟s͟ o͟f͟ t͟h͟e͟ E͟x͟e͟c͟u͟t͟i͟v͟e͟ O͟r͟d͟e͟r͟ i͟n͟t͟e͟r͟s͟e͟c͟t͟ d͟i͟r͟e͟c͟t͟l͟y̲ w͟i͟t͟h͟ p̲r͟o͟v͟i͟s͟i͟o͟n͟s͟ o͟f͟ t͟h͟e͟ P͟e͟t͟r͟o͟l͟e͟u͟m͟ I͟n͟d͟u͟s͟t͟r͟y̲ A͟c͟t͟ (P͟I͟A͟)̲ 2021.̲ W͟h͟i͟l͟e͟ e͟x͟e͟c͟u͟t͟i͟v͟e͟ a͟u͟t͟h͟o͟r͟i͟t͟y̲ u͟n͟d͟e͟r͟ S͟e͟c͟t͟i͟o͟n͟ 5 o͟f͟ t͟h͟e͟ C͟o͟n͟s͟t͟i͟t͟u͟t͟i͟o͟n͟ e͟m͟p̲o͟w͟e͟r͟s͟ t͟h͟e͟ P͟r͟e͟s͟i͟d͟e͟n͟t͟ t͟o͟ i͟m͟p̲l͟e͟m͟e͟n͟t͟ a͟n͟d͟ e͟n͟f͟o͟r͟c͟e͟ l͟a͟w͟s͟,̲ P͟E͟W͟I͟ o͟b͟s͟e͟r͟v͟e͟s͟ t͟h͟a͟t͟ s͟u͟b͟s͟t͟a͟n͟t͟i͟v͟e͟ a͟l͟t͟e͟r͟a͟t͟i͟o͟n͟s͟ t͟o͟ s͟t͟a͟t͟u͟t͟o͟r͟y̲ f͟i͟s͟c͟a͟l͟ f͟r͟a͟m͟e͟w͟o͟r͟k͟s͟ m͟a͟y̲ r͟e͟q̲u͟i͟r͟e͟ l͟e͟g̲i͟s͟l͟a͟t͟i͟v͟e͟ a͟m͟e͟n͟d͟m͟e͟n͟t͟ t͟o͟ e͟n͟s͟u͟r͟e͟ c͟o͟n͟s͟t͟i͟t͟u͟t͟i͟o͟n͟a͟l͟ a͟l͟i͟g̲n͟m͟e͟n͟t͟ a͟n͟d͟ i͟n͟s͟t͟i͟t͟u͟t͟i͟o͟n͟a͟l͟ c͟e͟r͟t͟a͟i͟n͟t͟y̲.̲
P͟E͟W͟I͟ f͟u͟r͟t͟h͟e͟r͟ n͟o͟t͟e͟d that t͟h͟e͟ t͟e͟c͟h͟n͟i͟c͟a͟l͟ i͟m͟p̲o͟r͟t͟a͟n͟c͟e͟ o͟f͟ d͟i͟s͟t͟i͟n͟g̲u͟i͟s͟h͟i͟n͟g̲ b͟e͟t͟w͟e͟e͟n͟:̲ C͟o͟n͟t͟r͟a͟c͟t͟u͟a͟l͟ r͟e͟v͟e͟n͟u͟e͟ a͟l͟l͟o͟c͟a͟t͟i͟o͟n͟s͟ e͟m͟b͟e͟d͟d͟e͟d͟ i͟n͟ P͟S͟C͟ a͟g̲r͟e͟e͟m͟e͟n͟t͟s͟,̲ C͟o͟r͟p̲o͟r͟a͟t͟e͟ r͟e͟t͟a͟i͟n͟e͟d͟ e͟a͟r͟n͟i͟n͟g̲s͟ o͟f͟ N͟N͟P͟C͟ L͟i͟m͟i͟t͟e͟d͟,̲ a͟n͟d͟ S͟t͟a͟t͟u͟t͟o͟r͟y̲ e͟a͟r͟m͟a͟r͟k͟e͟d͟ f͟u͟n͟d͟s͟ c͟r͟e͟a͟t͟e͟d͟ u͟n͟d͟e͟r͟ t͟h͟e͟ P͟I͟A͟.̲
Clarity in these distinctions is critical to avoid conflating contractual entitlements with discretionary fiscal practices.
On the question of direct remittance of royalty oil, tax oil, and profit oil to the Federation Account, PEWI recognizes the potential benefits in enhancing transparency and reducing intermediation. However, implementation must be carefully sequenced to preserve contractual stability and avoid unintended legal or investor confidence challenges.
The Initiative also observes that the structural dual role of NNPC Limited — as both commercial operator and concessionaire under certain arrangements — has long presented institutional tensions within the post-PIA framework. Any reform aimed at reinforcing NNPC’s commercial identity must be anchored in legal clarity and predictable governance mechanisms.
PEWI therefore encourages:
Prompt legislative consultation to ensure statutory coherence;
Transparent stakeholder engagement with operators and investors;
Clear implementation guidelines to safeguard contractual obligations.
A sequenced reform approach that balances fiscal urgency with institutional stability.
Nigeria’s petroleum sector remains central to national economic stability. Reforms that improve transparency and fiscal integrity are welcome. However, sustainable reform must align with constitutional processes, statutory frameworks, and investor predictability.
PEWI will continue to monitor developments and provide objective, technically grounded analysis in the public interest.
Wumi Iledare, PhD, FNAEE, LSU Professor Emeritus of Petroleum Economics and PEWI Oil, Gas, Energy Policy Forum, Abuja