The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reiterated its rejection of President Bola Tinubu’s Executive Order No. 9 of 2026, warning that the directive poses a serious threat to the stability of Nigeria’s oil and gas industry.
Speaking at the union’s National Executive Council meeting in Abuja, PENGASSAN President Festus Osifo described the order as a direct attack on the Petroleum Industry Act (PIA). He cautioned that the directive, particularly the requirement that 30 per cent of profit oil from Production Sharing Contracts be remitted directly to the Federation Account could destabilise operations within the Nigerian National Petroleum Company Limited (NNPC Ltd.) and endanger workers’ welfare.
“From our assessment, the provisions of this order are a direct attack on the PIA. If government wants to amend laws, send them to the National Assembly and let stakeholders debate them. The way this executive order has been done has the ability to impact the stability we currently enjoy in the oil and gas industry,” Osifo said.
Last week, Tinubu signed the order directing that royalty oil, tax oil, profit oil, profit gas and other revenues due to the Federation under production sharing, profit sharing and risk service contracts be paid directly into the Federation Account. The directive also scrapped the 30 per cent Frontier Exploration Fund under the PIA and halted the 30 per cent management fee on profit oil and gas retained by NNPC Ltd.
Osifo argued that removing the management fee without clarifying how NNPC Ltd. would be reimbursed could affect hundreds of workers administering Production Sharing Contracts. He explained that the fee, amounting to between 1.5 and 2.5 per cent of total revenue, is used to pay salaries of staff overseeing PSCs with international oil companies.
The union disclosed that it had already engaged government representatives and would continue discussions with the Presidential Implementation Committee on Wednesday. While acknowledging the government’s reliance on constitutional provisions, Osifo stressed that reforms must not undermine operational stability or workers’ welfare.
Beyond the executive order, Osifo also raised concerns about Nigeria’s broader economic challenges, arguing that claims of declining inflation do not reflect the hardship faced by citizens. He described insecurity as a national emergency, urging the government to prioritise technology, adequate funding, and practical solutions.
While welcoming improved rig counts and enhanced pipeline security, which he said had boosted production and revenue, Osifo cautioned that stability must be sustained. “When you remove your eyes from the ball, things can go wrong immediately. Government must sustain pipeline security because beyond revenue, it secures our members’ jobs,” he said.
PENGASSAN reaffirmed its commitment to dialogue, expressing optimism that ongoing engagements with the Presidential Implementation Committee would produce a compromise that safeguards jobs and ensures long-term stability in Nigeria’s oil and gas sector.
By Michael Oche, Abuja
