PENGASSAN rejects Tinubu’s oil revenue order, warns it could scare investors
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has kicked against a new executive order signed by President Bola Tinubu, which directs oil and gas revenues to be paid straight into the Federation Account.
The union says the order could weaken Nigeria’s oil and gas laws, discourage investors, and put thousands of jobs at risk.
At a press conference in Lagos, PENGASSAN president Festus Osifo said the directive was troubling because it attempts to use an executive order to override the Petroleum Industry Act (PIA), a law passed by the National Assembly after many years of debate.
Osifo explained that while the president has the power to issue executive orders, such orders should not cancel or set aside an existing law. According to him, key sections of the PIA clearly outline how oil revenues should be managed, and changing them requires legislative amendments, not executive action.
President Tinubu has defended the order, saying it is meant to protect national revenue, reduce wasteful deductions, and ensure that federal, state, and local governments receive their full share of oil income. The order also removes the 30 percent Frontier Exploration Fund provided for under the PIA and ends certain management fees linked to profit oil and gas.
However, PENGASSAN disputes claims that these deductions heavily benefit the Nigerian National Petroleum Company Limited. Osifo said the actual share that goes to the company is much smaller than being suggested and noted that the frontier exploration funds are kept in a separate account, not paid directly to the company.
The union warned that the move could send the wrong signal to international investors. Osifo recalled that before the PIA was enacted in 2021, uncertainty in the sector led to declining investments and reduced oil drilling activities. He said investors may once again lose confidence if laws can be altered through executive orders.
PENGASSAN also raised concerns about job security, saying the directive could affect the financial stability of the national oil company and threaten the jobs of thousands
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has kicked against a new executive order signed by President Bola Tinubu, which directs oil and gas revenues to be paid straight into the Federation Account.
The union says the order could weaken Nigeria’s oil and gas laws, discourage investors, and put thousands of jobs at risk.
At a press conference in Lagos, PENGASSAN president Festus Osifo said the directive was troubling because it attempts to use an executive order to override the Petroleum Industry Act (PIA), a law passed by the National Assembly after many years of debate.
Osifo explained that while the president has the power to issue executive orders, such orders should not cancel or set aside an existing law. According to him, key sections of the PIA clearly outline how oil revenues should be managed, and changing them requires legislative amendments, not executive action.
President Tinubu has defended the order, saying it is meant to protect national revenue, reduce wasteful deductions, and ensure that federal, state, and local governments receive their full share of oil income. The order also removes the 30 percent Frontier Exploration Fund provided for under the PIA and ends certain management fees linked to profit oil and gas.
However, PENGASSAN disputes claims that these deductions heavily benefit the Nigerian National Petroleum Company Limited. Osifo said the actual share that goes to the company is much smaller than being suggested and noted that the frontier exploration funds are kept in a separate account, not paid directly to the company.
The union warned that the move could send the wrong signal to international investors. Osifo recalled that before the PIA was enacted in 2021, uncertainty in the sector led to declining investments and reduced oil drilling activities. He said investors may once again lose confidence if laws can be altered through executive orders.
PENGASSAN also raised concerns about job security, saying the directive could affect the financial stability of the national oil company and threaten the jobs of thousands of workers in the industry.
According to the union, the issue goes beyond labour interests and affects the wider Nigerian economy. Osifo said reduced investment in oil and gas would lead to lower production, weaker foreign exchange earnings, and pressure on the naira, which would ultimately affect everyday Nigerians.
The union has called on President Tinubu to withdraw the executive order and instead work with the National Assembly to amend the PIA if changes are needed. It also said it will continue discussions with other industry groups and stakeholders, with further steps to be announced later.
