Presidency Responds To PENGASSAN: Tinubu’s Action Fully In Line With The Constitution

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

According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Petroleum Industry Act (PIA) does not override the Nigerian Constitution. Onanuga argued that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) misunderstood the supremacy of the Constitution in criticizing the President’s directive.

“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 said.

The union had earlier opposed the presidential order, accusing Tinubu of violating the PIA by halting revenue deductions. The presidential aide, however, described the union’s response as a “knee-jerk reaction” that failed to consider the constitutional provisions underlying the directive.

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 maintaining the Constitution and implementing federal laws. The order is also anchored in Section 44(3) of the Constitution, which assigns ownership, control, and derivative rights of all minerals, mineral oils, and natural gas in Nigeria to the Federal Government.

He added that the directive seeks to restore constitutionally mandated revenue entitlements for the Federal, State, and Local Governments, which he said were diminished in 2021 by the PIA. “The PIA created structural and legal channels through which substantial Federation revenues are lost through deductions, sundry charges, and fees,” Onanuga noted.

While PENGASSAN warned that the suspension could impair NNPCL’s ability to fund operations and meet statutory obligations, including contributions to the Frontier Exploration Fund essential for hydrocarbon exploration in 2026, the Presidency insisted that the Executive Order is necessary to prevent revenue leakages and protect funds constitutionally due to all tiers of government.