Executive Order on Direct Remittance: Prof Iledare Urges Tinubu to Engage Lawmakers, Stakeholders

Emmanuel Addeh in Abuja

To ensure statutory coherence, energy expert and Chair of Oil, Gas, and Energy Policy Forum, Prof. Emeritus Wunmi Iledare, has urged President Bola Tinubu to engage federal lawmakers and other stakeholders on the recent executive order restructuring oil and gas revenue remittances to the Federation Account.

In a note yesterday, the Executive Director of Emmanuel Egbogah Foundation (EEF), said he had reviewed the order, explaining that it represents a significant fiscal intervention within Nigeria’s petroleum governance framework.

Besides, he explained that it signals a renewed effort to strengthen revenue transparency, reduce discretionary retention, and improve statutory remittances to the three tiers of government.

“We therefore encourage: 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,” the professor argued.

He acknowledged the administration’s stated objectives, including safeguarding public revenues, curbing inefficiencies, and enhancing fiscal discipline, particularly in a period of budgetary strain and debt sustainability concerns.

Strengthening remittance accountability and improving visibility of petroleum inflows to the Federation Account, he said, are legitimate public finance priorities.

However, Iledare argued that certain aspects of the Executive Order intersect directly with provisions of the Petroleum Industry Act (PIA) 2021, explaining that the Frontier Exploration Fund (FEF) the Midstream and Downstream Gas Infrastructure Fund (MDGIF), and existing Production Sharing Contract (PSC) fiscal structures are statutory constructs established by the National Assembly.

“While executive authority under Section 5 of the Constitution empowers the President to implement and enforce laws, PEWI observes that substantive alterations to statutory fiscal frameworks may require legislative amendment to ensure constitutional alignment and institutional certainty.

“PEWI further notes the technical importance of distinguishing between: Contractual revenue allocations embedded in PSC agreements, Corporate retained earnings of NNPC Limited, and

Statutory earmarked funds created under the PIA. Clarity in these distinctions is critical to avoid conflating contractual entitlements with discretionary fiscal practices,” he stressed.

On the question of direct remittance of royalty oil, tax oil, and profit oil to the Federation Account, he recognised the potential benefits in enhancing transparency and reducing intermediation. However, implementation, he said, must be carefully sequenced to preserve contractual stability and avoid unintended legal or investor confidence challenges.

He also observed 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, explaining that any reform aimed at reinforcing NNPC’s commercial identity must be anchored in legal clarity and predictable governance mechanisms.

“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,” Iledare stated.