The Federal Government has moved to clarify the intent and scope of Executive Order 9 (EO9), following widespread commentary suggesting that the directive amounts to the President “making law.”
This was contained in a press statement signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation and Secretary of the Implementation Committee on EO9.
Yakubu insisted that the order is firmly rooted in constitutional provisions and fiscal discipline, not executive overreach.
Constitutional Basis of EO9
The statement underscores that EO9 does not create new law but enforces existing constitutional mandates regarding the custody of Federation revenues.
- Section 80(1) of the 1999 Constitution (as amended): Mandates that all revenues or monies raised or received by the Federation must be paid into the Consolidated Revenue Fund.
Public revenue cannot lawfully be retained, applied, or warehoused outside constitutionally recognized accounts.
- Section 162: Complements this rule by requiring that revenues accruing to the Federation be paid into the Federation Account for distribution in line with constitutional allocation principles.
The government insists that the “order of legality is clear”—revenues must first enter constitutionally recognized accounts before they can be appropriated, shared, or spent.
Operational Focus in the Oil and Gas Sector
EO9 is designed to operationalize these constitutional provisions specifically within the oil and gas sector.
- Direct remittance of petroleum revenues—including royalties, taxes, profit oil and gas, penalties, and related receipts—into constitutionally recognized accounts.
- Strengthening reconciliation and transparency across collection, custody, and reporting.
- Ensuring that revenues are not diverted, warehoused, or misapplied outside the constitutional framework.
This move is expected to enhance fiscal integrity, improve accountability, and bolster confidence in the Federation’s revenue management system.
No Legislative Intrusion
The statement firmly rejects claims that EO9 intrudes into legislative competence.
- Section 60(1): Preserves the procedural autonomy of the National Assembly.
- EO9 does not regulate legislative procedure, amend the Petroleum Industry Act (PIA), or repeal any statute.
- It is issued under Section 5 of the Constitution, which empowers the President to ensure faithful execution of the Constitution and applicable laws.
Thus, EO9 is presented as an executive instrument strictly within constitutional boundaries.
Judicial Oversight and Dispute Resolution
The government acknowledges that disputes over EO9’s constitutional validity may arise. In such cases, the judiciary remains the proper forum for determination.
Pending any judicial pronouncement, however, the Executive insists it is duty-bound to:
- Protect Federation revenues.
- Uphold constitutional supremacy.
- Strengthen fiscal integrity for FAAC (Federation Account Allocation Committee) distributions.
- Safeguard budget credibility and macroeconomic stability.
Broader Implications
Analysts note that EO9 reflects the government’s attempt to tighten fiscal discipline in a sector historically plagued by opacity and leakages.
By mandating direct remittance and enhancing transparency, the order could improve Nigeria’s fiscal position, bolster investor confidence, and reduce disputes over revenue allocation.
Critics, however, remain cautious, warning that without robust enforcement and independent oversight, EO9 may face challenges in implementation.
The judiciary’s eventual interpretation will be pivotal in determining the scope and sustainability of the order.
