Tinubu’s Action Is Based On The Constitution – Presidency Fires Back At PENGASSAN

The Presidency has stated that President Bola Tinubu acted within his constitutional rights when he halted revenue deductions by the Nigerian National Petroleum Company Limited (NNPCL) and other agencies.

Speaking to Punch, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said that the Petroleum Industry Act is not superior to the Nigerian constitution.

Onanuga argued that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ‘s criticism of the directive demonstrated a lack of understanding of the constitutional 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,” Onanuga stated.

The Petroleum and Natural Gas Senior Staff Association of Nigeria had on Friday opposed the presidential fiat, accusing the President of violating the PIA with his revenue retention order.

But the presidential spokesman insisted the union made a “knee-jerk reaction” without studying the constitutional provisions underpinning the directive.

“PENGASSAN should have read the constitution before making its knee-jerk reaction,” he said.

Onanuga explained that the Executive Order derives its authority from section 5 of the 1999 Constitution, which vests the executive powers of the Federation in the President, including the maintenance of the Constitution and the implementation of federal laws.

He said the directive is further anchored on section 44(3) of the Constitution, which vests ownership, control, and derivative rights in all minerals, mineral oils, and natural gas in Nigeria in the Government of the Federation.

According to the presidential aide, the Executive Order seeks to restore constitutional revenue entitlements of the Federal, State, and Local Governments, which were “taken away in 2021 by the Petroleum Industry Act.”

“The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges, and fees,” Onanuga stated.

But the union argued that the directive would cripple the company’s ability to fund operations and fulfil its 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 plug revenue leakages and ensure that funds constitutionally due to all tiers of government are not diverted through statutory deductions.