Minister asks for preparation time, delays revenue executive order hearing

A HIGH-PROFILE joint investigation by the Senate and House of Representatives into President Bola Tinubu’s recent executive order on oil and gas revenue collection was postponed on Thursday after the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, requested more time to prepare his response.

The session, convened jointly by the Senate and House committees on Petroleum Resources and Gas, was intended to scrutinise the implications of the president’s directive requiring all oil and gas revenues to be directly remitted into the federation account. Lawmakers described the inquiry as a critical exercise in understanding how the new procedure might affect the operations of oil companies, government revenue flows, and the overall fiscal architecture of the country.

Among the key figures present at the hearing were Mr Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), and Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Ms Oritsemeyiwa Eyesan. Both officials, along with other senior regulatory personnel, were expected to provide technical insights on how the executive order would interact with existing contractual arrangements and industry practices.

However, the proceedings encountered an early hurdle when Minister Lokpobiri informed the joint committee that he was not yet in a position to respond fully to lawmakers’ queries. He explained that he had been notified of the hearing only a day before it convened but chose to attend in order to show respect for the legislative process. The minister further stated that neither he nor his team had access to the full set of documents and data necessary to defend or clarify the administration’s rationale behind the executive order.

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“Given the short notice and the volume of materials involved, it would not be responsible for us to proceed without adequate preparation,” Lokpobiri told the lawmakers. “We need time to ensure that our submissions are comprehensive and accurately reflect the objectives and implications of the president’s directive.”

Minister’s request discussed

The minister’s request sparked a brief discussion among committee members, who weighed the need for timely accountability against the minister’s explanation of insufficient preparation time. Co-chair of the joint committee and Chairman of the Senate Committee on Gas, Mr Agom Jarigbe, ultimately put the matter to a voice vote. The majority of legislators present agreed to grant Lokpobiri additional time, and the committee resolved to reschedule the hearing at a later date.

Observers noted that the postponement underscores the sensitivity of the executive order, which represents a significant shift in how revenues from Nigeria’s oil and gas sector are collected and managed. By mandating direct remittance into the federation account, the president aims to streamline revenue flows, reduce potential leakages, and enhance fiscal oversight. However, the move has raised questions among lawmakers, industry stakeholders, and financial analysts about its practical implications for cash management, contractual obligations, and sector investment.

The rescheduled session is expected to involve detailed presentations from both regulatory authorities and oil companies, examining potential challenges, compliance requirements, and transitional arrangements needed to implement the order without disrupting operations. Lawmakers have indicated that they are particularly interested in understanding how the directive will interact with existing fiscal arrangements under the Petroleum Industry Act and whether adjustments to regulatory frameworks may be required.

For now, the inquiry remains on hold, with the next session anticipated to provide a more thorough, evidence-based discussion of the policy and its anticipated effects on the country’s oil and gas industry. The minister’s request for additional preparation time, while delaying immediate answers, reflects the technical and administrative complexity surrounding the executive order, highlighting the need for careful legislative oversight and a thorough process.