The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Thursday said the Executive Order recently signed by President Bola Tinubu on the oil and gas sector was an aberration and would stifle Nigeria’s growth.
PENGASSAN President, Comrade Festus Osifo, in a media briefing in Lagos, stated that the executive order would scare foreign investors, reduce financial inflows, and stunt growth in the oil and gas sector.
He said it would negatively affect the stability of the naira against the dollar, as crude oil is the country’s major revenue source. He explained that when the naira’s value is weakened, it reduces the purchasing power of workers in the sector and all Nigerians due to inflation.
The PENGASSAN President said the Executive Order, if not rescinded, would negatively affect the operations and liquidity of the Nigerian National Petroleum Company Limited (NNPC Ltd), such that salaries of workers and other financial obligations would be challenged.
He also said that it is against the Petroleum Industry Act (PIA), adding that such a move was an aberration and an overreach.
According to him, President Tinubu was wrongly advised, adding that if he had taken a holistic look at the advice, he may not have signed the Executive Order.
He also said some of the financial calculations presented to the President regarding the Executive Order were incorrect.
According to the Official Gazette of the Federal Republic of Nigeria No. 33, Vol. 113, the order was short-titled: “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.”
The order, among other provisions, suspended the payment to NNPC Ltd of the 30% on profit oil and profit gas revenue due to the federation for the management of Production Sharing, Profit Sharing, and Risk Service Contracts.
Osifo said PENGASSAN was not consulted, adding that they had expected an executive bill for which they were ready to make presentations to the appropriate committee of the National Assembly during public hearings.
He said PENGASSAN will engage with other sister associations, unions, and relevant stakeholders to find a solution to the issue.
He decried that the National Assembly and the Attorney-General of the Federation should have opposed the Executive Order and informed the President that the order was against the law.
He said:
“When we saw that order, we were troubled. PENGASSAN played a very active role during the formative stage of the PIA. So when the PIA came, we started seeing some investments trickling in. But some recent events are quite troubling. One of them was what was released to the press by Bayo Onanuga.”
“We acknowledge that the President of the Federal Republic of Nigeria has the right to enact Executive Orders. We know that the President has a duty and responsibility to protect and safeguard the industry. But we strongly believe that in this particular case, the President has been misled. We strongly believe that the people advising the President did not tell him the entire truth. The President, whom we know, is someone traveling all over the world to bring investments; moving from one part of the country to another, and one part of the world to another, to bring investors and ensure Nigeria’s economy thrives.”
“If the President were exposed to the entire truth regarding this Executive Order, we know he would have acted otherwise. Being someone who has worked in the industry and at ExxonMobil, and who understands how this industry has evolved, he wouldn’t have signed that Executive Order.”
He added:
“An Executive Order cannot override the provisions of a law. It’s just as if today the President wakes up and signs an order to decrease government contributions to pensions from 10% to 2%. Can that happen? No. This is similar to the executive order signed by the President.”
“It is a direct attack on the provisions of the PIA, specifically Sections 8, 9, and 54. The President has used an executive order to set aside a law of the Federal Republic of Nigeria. This is troubling. What are we telling investors and the international community? That with an executive order, you can set aside the law of the land?”
“This is an aberration. It should never have happened because the President is telling Nigerians and the international community that he can sit down one day and use an order to override laws. If this continues, the international community may lose faith in the PIA, thinking that tomorrow, royalties could be altered by another executive order. The signaling is troubling and incorrect. This is a direct attack on Nigeria, not just workers in the oil and gas industry.”
