The Presidency has pushed back sharply against criticism from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), defending President Bola Tinubu's Executive Order halting unauthorized revenue deductions by the Nigerian National Petroleum Company Limited (NNPCL) and other agencies.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, described PENGASSAN's objections as narrow and misguided, arguing they prioritize the 2021 Petroleum Industry Act (PIA) over the Nigerian Constitution.
"PENGASSAN is focusing on PIA alone. The President’s action is based on the Nigerian Constitution, which PIA violates in allowing the deductions that the President has now stopped. PIA is not superior to our constitution," Onanuga stated.
He anchored the Executive Order on Section 5 of the 1999 Constitution (executive powers to uphold the Constitution and execute laws) and Section 44(3) (federal control over minerals, mineral oils, and natural gas).
The directive aims to end post-2021 leakages from various deductions, ensure full remittance of oil/gas revenues (royalties, profit shares, fees) to the Federation Account, and restore proper allocations to federal, state, and local governments.
This rebuttal follows PENGASSAN's protest at NNPC Towers in Abuja, where the union accused President Tinubu of breaching the PIA, eroding NNPCL's financial and operational autonomy, and jeopardizing funding for key initiatives like the Frontier Exploration Fund (critical for 2026+ hydrocarbon discoveries).
The union threatened escalated action and demanded the order's reversal, warning of risks to jobs, investor confidence, and sector stability.
The Presidency urged PENGASSAN and other stakeholders to examine the constitutional provisions underpinning the move, framing it as a necessary step for fiscal transparency, revenue protection, and national interest over sectoral privileges under the PIA.
The dispute highlights ongoing friction in Nigeria's oil sector between PIA-driven reforms for autonomy and efficiency, and central government efforts to curb perceived revenue diversions and enforce constitutional fiscal discipline.
As of February 23, 2026, the Executive Order remains active amid continued debate on its long-term impact.
Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com