Tinubu's Executive Order 9 Enhances Oil Revenue Transparency

Executive Order 9 (EO9), issued by President Bola Tinubu, is designed to strengthen fiscal transparency and equitable revenue distribution in Nigeria's oil and gas sector. The order mandates that royalties and taxes from oil profits be paid directly into the federal account, eliminating the previous 30% management fee on the frontier exploration fund as stipulated in the Petroleum Industry Act (PIA).

EO9 invokes Section 5 of the 1999 Constitution and aims to ensure that revenue accruing to the federal government is submitted monthly to the Federal Account Allocation Committee (FAAC). The order seeks to improve compliance and efficiency in revenue collection, stop leakages, and correct anomalies in the distribution of oil and gas wealth among the three tiers of government.

However, it has faced criticism regarding potential oversight loss by the NUPRC and concerns from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) about revenue flow and public service integrity.