The Nigerian National Petroleum Company (NNPC) Limited has thrown its weight behind Executive Order 9, arguing that it will improve financial transparency in the energy sector.
NNPC Limited’s Group Chief Executive Officer (GCEO), Bayo Ojulari, said this on the sidelines of the CERAWeek by S&P Global in Houston, United States.
“Regarding Executive Order 9, the intent is to improve revenue transparency across the entire energy industry, not just NNPC. We fully support that intent,” Ojulari told Channels Television in an exclusive interview.
“The ‘devil is in the details,’ so we are currently working with the implementation team to provide the technical data needed to ensure the strategic intent is achieved smoothly. We aren’t silent; we are collaborating directly with the team to provide the necessary input.”
President Bola Tinubu issued Executive Order 9 last month as part of moves to enhance financial transparency in the sector, curb wasteful spending, and eliminate duplicate structures.
The Executive Order was benchmarked on Section 44(3) of the Constitution and gives ownership, control, and derivative rights in all minerals, mineral oils, and natural gas in, under, and upon any land in Nigeria—including its territorial waters and Exclusive Economic Zone—in the Government of the Federation.
The directive seeks to restore the constitutional revenue entitlements of the federal, state, and local governments, which were removed in 2021 by the Petroleum Industry Act (PIA).
Under the current PIA framework, NNPC Limited retains 30% of the Federation’s oil revenues as a management fee on Profit Oil and Profit Gas derived from Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts.
However, stakeholders like the Petroleum and Natural Gas Senior Staff Association of Nigeria .
“The Executive Order signed by the President yesterday is a direct attack on the provisions of the Petroleum Industry Act (PIA)—specifically Sections 8, 9, and 64,” PENGASSAN president, Festus Osifo, said.
“What the President has done is use an Executive Order to set aside a law of the Federal Republic of Nigeria. This is deeply troubling. What signal are we sending to investors and the international community?
“We are effectively telling them that the law of the land can be set aside by a simple executive decree. This is an aberration and should never have happened.”