Professor Wumi Iledare, a renowned expert in petroleum economics and Professor Emeritus at Louisiana State University, has reacted to President Bola Tinubu’s Executive Order 9 of 2026, directing the restructuring of oil and gas revenue remittances to the Federation Account.
The order signed by President Tinubu on February 13 but announced on February 18, 2026, mandates the direct remittance of oil and gas revenues (royalties, taxes, and profit oil) to the Federation Account, effectively stripping the Nigerian National Petroleum Company Limited (NNPC) of its 30 per cent management fee and the 30 per cent Frontier Exploration Fund (FEF) deduction.
In a statement made available to journalists, Professor Iledare, who is the Chair, Oil, Gas, Energy Policy Forum, Abuja, and also serves as Executive Director of the Emmanuel Egbogah Foundation acknowledged the Tinubu administration’s core objectives, which are safeguarding public revenues, curbing inefficiencies, and enhancing fiscal discipline, especially in a period of budgetary strain and debt sustainability concerns.
While noting that the goals of the Executive Order – reinforcing remittance accountability and improving visibility of petroleum inflows to the Federation Account – are legitimate public finance priorities, Iledare, however, warned that it must be carefully implemented to avoid what he described as “unintended legal or investor confidence challenges.”
The energy economist observed that aspects of the Executive Order clash with provisions of the Petroleum Industry Act (PIA) of 2021, especially the parts that empower NNPC to deduct some percentage on the oil revenues before remittance to the Federation Account is made.
He stated that while the president is empowered by section 5 of the Nigerian Constitution to implement and enforce laws, substantive alterations to the laws bordering on fiscal policies may require legislative intervention for amendment to ensure constitutional alignment and institutional certainty.
According to him, fiscal arrangements such as the Frontier Exploration Fund, the Midstream and Downstream Gas Infrastructure Fund, and the Production Sharing Contract (PSC) were enacted in the PIA by the National Assembly and require legislative procedure of amendment.
He further stressed the need to distinguish between contractual revenue allocations embedded in the PSC agreements, corporate retained earnings of NNPC Limited, and statutory earmarked funds created under the PIA.
“Clarity in these distinctions is critical to avoid conflating contractual entitlements with discretionary fiscal practices,” he advised.
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Iledare noted that the proposed direct remittance of royalty oil, tax oil, and profit oil to the Federation Account could enhance transparency and reduce intermediation. He, however, warned that “implementation must be carefully sequenced to preserve contractual stability and avoid unintended legal or investor confidence challenges.”
He further noted that the dual role of NNPC Limited — as both commercial operator and concessionaire under certain arrangements — has long presented institutional tensions within the post-PIA framework. He advised that any reform aimed at reinforcing NNPC’s commercial identity must be anchored on legal clarity and predictable governance mechanisms.
For a sustainable reform, he recommended “prompt legislative consultation to ensure statutory coherence; transparent stakeholder engagement with operators and investors; clear implementation guidelines to safeguard contractual obligations and a sequenced reform approach that balances fiscal urgency with institutional stability.”
While reaffirming that Nigeria’s petroleum sector remains central to national economic stability, Iledare emphasised that reforms must focus on improving transparency and fiscal integrity.
“Sustainable reform must align with constitutional processes, statutory frameworks, and investor predictability,” he added.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
