Abuja: The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for amendments under Executive Order 9 to be subjected to a legislative process to ensure stability in the oil and gas sector. Mr Festus Osifo, President of PENGASSAN, made this appeal while addressing journalists at the opening of the association’s National Executive Council (NEC) meeting.
According to News Agency of Nigeria, President Bola Tinubu issued Executive Order 9 on February 13 to reform oil and gas revenue management and enhance transparency in government earnings. The order mandates that all petroleum revenues, including royalties, taxes, and profit oil, be directly deposited into the Federation Account to prevent leakages and enforce constitutional provisions.
Osifo expressed concerns that the provisions of the order could undermine existing laws governing the petroleum industry, particularly the Petroleum Industry Act (PIA). He emphasized that amending industry laws through executive orders, rather than legislative processes, poses risks to transparency and sectoral confidence.
He further stated, “The provisions of Executive Order 9, as presently constituted, amount to a direct threat to the stability we currently enjoy in the oil and gas sector. Amending critical industry laws through executive orders, instead of legislative processes, undermines transparency, stakeholder confidence, and long-term sectoral sustainability. Such actions, if unchecked, could negatively affect investments, operations, and the welfare of workers across the petroleum industry.”
The PENGASSAN president urged the Federal Government to route all proposed legal amendments through the National Assembly for thorough debate and stakeholder engagement. He highlighted that policy uncertainty could deter investment and disrupt ongoing reforms in the oil and gas industry.
Osifo pointed out that the order could adversely affect workers’ jobs, welfare, and operational funding structures within key industry institutions. He noted potential implications for salary payments and management fees tied to profit oil arrangements in joint venture operations. Furthermore, instability in the sector could diminish foreign exchange earnings and further weaken the national economy.
He also warned that declining confidence in the sector could exacerbate inflationary pressures already affecting Nigerian workers. However, Osifo mentioned that PENGASSAN had engaged with government officials multiple times and would meet with the Presidential Implementation Committee to address concerns over Executive Order 9.