The Presidency has affirmed that President Bola Tinubu acted within his constitutional authority when he ordered the suspension of revenue deductions by the Nigerian National Petroleum Company Limited (NNPCL) and other agencies.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, told Punch that the Petroleum Industry Act (PIA) does not override the Nigerian Constitution.
Onanuga argued that criticism from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) reflected a misunderstanding of the Constitution’s supremacy over ordinary legislation. “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,” he said.
The union had on Friday opposed the presidential directive, claiming it violated provisions of the PIA. Onanuga described the union’s response as a “knee-jerk reaction” that failed to consider the constitutional basis of the President’s action. “PENGASSAN should have read the constitution before making its knee-jerk reaction,” he stated.
According to the presidential aide, the Executive Order is grounded in section 5 of the 1999 Constitution, which vests executive powers in the President to uphold the Constitution and implement federal laws, and section 44(3), which places ownership and control of all minerals, mineral oils, and natural gas in the Government of the Federation.
Onanuga explained that the directive seeks to restore constitutional revenue entitlements to the Federal, State, and Local Governments, which he said were undermined by the PIA in 2021 through deductions, fees, and other charges. “The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges, and fees,” he noted.
PENGASSAN argued that the directive could hinder NNPCL’s ability to fund operations and meet statutory obligations, including contributions to the Frontier Exploration Fund, critical for hydrocarbon exploration in 2026. However, the Presidency maintained that the order is necessary to prevent revenue leakages and ensure that funds constitutionally due to all tiers of government are not diverted through statutory deductions.
