Festus Usifo, President of PENGASSAN
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) urges President Bola Tinubu to withdraw the Executive Order on oil and gas revenue remittance, citing “inaccurate briefings” and warning of investor flight and job losses.
PENGASSAN President, Festus Usifo said Sections 8, 9 and 64 of the Petroleum Industry Act (PIA) are clear.”
He pointed out that “What has been done amounts to setting aside an Act of the Federal Republic. That is an aberration and should never happen.
“If this is allowed to stand, the international community will lose confidence in the PIA and may conclude that at any time the Executive can nullify provisions safeguarding their investments. The signaling is faulty and completely incorrect,” he noted.
Usifo further explained that some provisions in the Order also do not reflect the full facts, adding that it was stated that 30 percent from Production Sharing Contracts goes to NNPC Limited, but that is not correct.
“The actual percentage that eventually gets to NNPC is below two percent; the calculations are there. Likewise, the claim that 30 percent of the Frontier Exploration Fund goes directly to NNPC is inaccurate.
“Those funds go into designated accounts, not into NNPC directly. It is also wrong to assume royalties go into the personal account of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) those revenues go into the Federal Government account.
The PENGASSAN President further noted that beyond wrong signaling, the association is deeply concerned because its members working with NNPC—about 4,000 Nigerians—could be on the verge of redundancy in the coming months if this stands, as management may be unable to meet obligations.
He said, “That would create serious industrial relations challenges in the sector.
“This is why we believe some of the information presented to the President was inaccurate, and we urge him to recall the Order and review it.
“We know he has worked hard to attract investment into the industry, and we should not allow one Executive Order to undermine the progress made since the PIA was enacted in August 2021,” Osifo noted.
He further mentioned that there are already challenges facing SMEs since the Naira is grossly undervalued.
The PENGASSAN President said, “If we want inflation to reduce, we must lower FX costs and allow the naira to appreciate. Oil and gas foreign exchange earnings remain a major revenue source.
“If the industry declines, the limited revenue generated will be used merely to defend the naira, which will erode workers’ purchasing power.
“Even the ₦70,000 minimum wage will lose value if production drops, rig counts fall, and FX earnings shrink,” he said.
Usifo emphasised that the EO is not just an attack on workers in the oil and gas industry; it is a direct threat to Nigeria’s economy.
“We are professionals in this industry and understand the full implications of these reforms. Government may seek more revenue, but the approach could end up yielding less because it risks discouraging investment.
“International investors need certainty, clarity of laws, and predictable operating frameworks. They will not invest in an environment where rules are unclear or subject to sudden change,” he noted.
Speaking on the next steps if the President fails to withdraw the Order, Usifo noted that further engagement would follow, saying:
“This is just the first phase of our response. We do not act on impulse; we will engage with the government and relevant stakeholders over the coming week, after which our National Executive Council will convene to determine the next course of action.”
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