Tinubu’s executive order doesn’t intrude into legislative competence ― Budget Office

The Director-General of the Budget Office of the Federation, Tanimu Yakubu, has defended Executive Order 9 (EO9), saying the directive by President Bola Tinubu is meant to enforce constitutional provisions on the custody of public revenues and does not amount to the president making new laws.

Yakubu, in a statement issued on Monday, said recent comments portraying EO9 as an act of executive overreach were based on a misunderstanding of the Constitution and the fiscal issues involved.

The Budget Office boss stated that Section 80(1) of the 1999 Constitution (as amended) mandates that all revenues raised or received by the Federation must be paid into the Consolidated Revenue Fund of the Federation, adding that no public revenue can lawfully be retained or applied outside constitutionally recognised funds.

He added that Section 162 of the Constitution reinforces this requirement by providing that revenues accruing to the Federation must first be paid into the Federation Account before any sharing or expenditure takes place.

Yakubu said EO9 simply operationalises these constitutional provisions within the oil and gas sector by directing that petroleum revenues — including royalties, taxes, profit oil and gas, penalties and other related receipts — be paid directly into constitutionally recognised accounts.

Tinubu signs order for direct remittance of oil, gas revenues to federation account

Yakubu stated: “Section 162 complements this rule by requiring revenues accruing to the Federation to be paid into the Federation Account for distribution in accordance with constitutional allocation principles. The order of legality is clear: revenue must first enter constitutionally recognised accounts before it can be appropriated, shared, or spent.

“EO9 operationalises these provisions in the oil and gas sector by directing direct remittance of petroleum revenues – including royalties, taxes, profit oil and gas, penalties, and related receipts – into constitutionally recognised accounts, and by tightening reconciliation and transparency across collection, custody, and reporting.”

The Budget Office boss stressed that EO9 does not interfere with the powers of the National Assembly of Nigeria, noting that the executive order neither regulates legislative procedure nor amends or repeals any existing law, including the Petroleum Industry Act.

He said: “EO9 does not intrude 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 an executive instrument issued under Section 5 to ensure faithful execution of the Constitution and applicable laws.

“If any party disputes the constitutional validity of EO9, the judiciary remains the proper forum for determination. Pending any judicial pronouncement, the Executive is duty-bound to protect Federation revenues, uphold constitutional supremacy, and strengthen fiscal integrity for FAAC distributions, budget credibility, and macroeconomic stability.”

The Star