Tinubu’s EO9 not a revenue windfall — Oyebode

The Chairman of the Forum of State Commissioners of Finance, Akintunde Oyebode, has said Bola Tinubu’s Executive Order 9 on the direct remittance of oil and gas revenues would contribute only about N1.5 trillion to the Federation Account.

Speaking on Arise News on Tuesday, Oyebode — who also serves as Ekiti State Commissioner for Finance — argued that the directive’s real significance lies in enforcing constitutional control over federation revenues and addressing leakages linked to the Petroleum Industry Act framework.

He explained that proceeds from management fees, frontier exploration charges and gas-flaring penalties were estimated to add about N1.5 trillion to the Federation Account. However, he noted that the increase is modest when compared with annual inflows of roughly N30 trillion, describing the impact as single-digit growth rather than a major revenue windfall.

Executive Order 9, signed in February 2026, requires oil and gas revenues due to the federation to be paid directly into the Federation Account, limiting deductions by agencies and ensuring statutory inflows are remitted before any spending or appropriation.

The policy has sparked debate across the petroleum sector. The Petroleum and Natural Gas Senior Staff Association of Nigeria warned the order could negatively affect the industry and discourage investment, urging the government to reconsider the directive.

Oyebode rejected suggestions that states would simply receive more funds from the arrangement, stressing that the objective is constitutional compliance and safeguarding public revenues rather than increasing state allocations.

He also pointed to broader concerns about declining joint venture inflows since the implementation of the Petroleum Industry Act, noting that contributions had reportedly fallen from about $12bn before the law to roughly $2bn afterwards. According to him, issues surrounding asset transfers, valuation and governance require closer scrutiny.

Addressing fears that the directive could disrupt operations at the NNPC Limited, Oyebode argued the sums involved were relatively small compared with the company’s scale. He cited the firm’s audited financial statements, which showed profits of N4.5 trillion in 2024, and suggested the changes would not materially affect its finances.

The Presidency has defended Executive Order 9 as an effort to enforce constitutional provisions rather than introduce new legislation. On legal concerns and investor reactions, Oyebode said disputes should be resolved through the courts while stakeholders await implementation guidelines from the government’s committee.

He added that existing contracts should remain unaffected if properly structured and urged patience until detailed rules are released.

On the broader investment climate, Oyebode said the oil and gas sector had recorded about $10bn in new investments, pointing to major projects and final investment decisions as signs of improving momentum.

Discussing state finances, he dismissed claims that states were being “given” money by the Federal Government, emphasising that Federation Account revenues belong to the federation and are shared according to constitutional provisions. He also said domestic debt levels in many states had declined by between 15 and 20 per cent over the past two years, while increases in foreign debt were largely driven by exchange-rate movements.

Oyebode further denied that states routinely borrow for recurrent spending, explaining that loans are typically tied to structured borrowing plans and often fund infrastructure projects such as water supply, agriculture and environmental programmes.

He highlighted transparency reforms under the World Bank-backed State Fiscal Transparency, Accountability and Sustainability programme, noting that many states now publish budgets, procurement data, quarterly implementation reports and audited financial statements, and encouraged civil society to scrutinise government spending.