By Obiabin Onukwugha
As reactions continue to trail the recently Executive Order No. 9 issued by President Bola Tinubu, two bodies in the oil and gas sector have expressed different views on the impact of the pronouncement.
Tinubu had, in the Executive Order No. 9, directed “all operators/contractors of oil and gas assets held under a production sharing contract shall, from the date of the Executive Order, which is February 13, 2026, pay Royalty Oil, Tax Oil, Profit Oil, Profit Gas, and any other interest howsoever described which is due to the government of the federation directly to the Federation Account.”
Tinubu said the aim is to restore the constitutional revenue entitlements of the Federal, State, and Local Governments, which were taken away in 2021 by the Petroleum Industry Act (PIA). The directive removes the Nigerian National Petroleum Company Limited (NNPCL) authority to retain the 30 per cent management fee and frontier exploration fund previously allowed under the PIA.
Reacting, PETROAN National President, Dr. Gillis Harry, commended President Tinubu, describing the action “as a bold step toward enhancing
accountability, eliminating revenue leakages, and reinforcing public confidence in the management of Nigeria’s petroleum resources.”
A statement by PETROAN National Public Relations Officer, Dr Joseph Obele, made available to NatureNews on Saturday, noted that compelling NNPCL to remit revenues directly reinforces its transformation into a commercially disciplined national energy company.
According to the PETROAN National President, the the executive order will foster enhanced revenue transparency,
centralise remittance of oil and gas revenues thereby strengthening accountability and public oversight.
Gillis-Harry, described the Executive Order as “a courageous and reform-driven decision that aligns with global best
practices in fiscal governance.”
He endorsed the proposal to adopt the Nigeria LNG Limited (NLNG) Bonny model
for the Port Harcourt Refinery, stating that such structure would enhance
operational efficiency, transparency, private-sector discipline, and long-term
productivity of Nigeria’s refineries.
He also emphasised that adopting a commercially driven governance model similar to NLNG would make the refineries viable, efficient, and globally competitive, while strengthening Nigeria’s energy security and reducing dependence on fuel imports.
Dr Gillis-Harry reaffirmed PETROAN’s readiness to collaborate with the Federal
Government and regulatory institutions to ensure that Executive Order No. 9
strengthens energy security, protects employment, and promotes long-term
sectoral stability.
However, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN) Festus Osifo, faulted the public explanation surrounding the executive order, arguing that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Osifo, who spoke during an interview at a Television program, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited. He emphasised that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions,” he said.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
He also warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, adding that any amendment to the existing legal framework must pass through the National Assembly.
Osifo added that stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process.