The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned that President Bola Ahmed Tinubu’s Executive Order mandating direct remittance of oil and gas revenues to the Federation Account cannot supersede the Petroleum Industry Act (PIA), warning that the directive could expose workers to mass redundancies if not reviewed.
Addressing journalists at a press briefing yesterday, PENGASSAN President Festus Osifo said the union recognises the government’s intention to boost revenue inflows but insisted that the PIA remains the subsisting law governing the petroleum sector and cannot be altered through executive action alone.
Osifo explained that under the PIA, NNPC Limited is structured to operate as a commercial entity with clearly defined revenue retention provisions, including allocations for operational costs, working capital and investment obligations. He argued that the Executive Order, which halts the 30 per cent management fee on profit oil and profit gas and redirects other retained funds to the Federation Account, effectively restructures financial arrangements already embedded in statute.
According to him, removing these revenue buffers without legislative amendment could weaken NNPC Limited’s liquidity position, limit its ability to finance joint venture operations and undermine its capacity to meet contractual and workforce obligations.
“If the order is not recalled, our members are in danger of being declared redundant because NNPC may not be able to meet their obligations to our members,” Osifo said.
He noted that thousands of skilled Nigerian professionals are employed directly and indirectly through NNPC Limited and its affiliated operations, adding that any sudden funding squeeze could lead to project delays, downsizing and loss of technical expertise critical to national oil production.
Osifo further stated that the union is particularly concerned about the broader investment climate in the oil and gas sector. He warned that policy reversals or unilateral changes to the fiscal structure created by the PIA could create uncertainty for investors and weaken confidence in the regulatory framework that the Act was designed to stabilise.
While reaffirming PENGASSAN’s support for transparency, accountability and improved revenue management, Osifo stressed that reforms must follow constitutional and legislative procedures. He called for immediate stakeholder engagement involving the Presidency, the National Assembly, labour unions and industry operators to clarify the legal standing of the Executive Order and prevent avoidable disruptions.
He added that PENGASSAN would continue to monitor developments closely and take all lawful steps necessary to protect the interests of its members.
The Federal Government has defended the Executive Order as a measure to plug revenue leakages, eliminate duplicative deductions and strengthen fiscal stability. However, PENGASSAN maintains that any adjustment to revenue retention structures under the PIA must be effected through amendment of the law to safeguard both institutional integrity and employment in the sector.