Lagos, Nigeria — The Nigerian Federal Government is facing mounting opposition from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) after it issued an Executive Order directing that oil and gas revenues be remitted directly into the Federation Account, bypassing significant deductions previously retained by the Nigerian National Petroleum Company (NNPC) Limited.
PENGASSAN, speaking at a press briefing in Lagos, criticised the directive signed by President Bola Tinubu as a violation of the Petroleum Industry Act (PIA) 2021 and the Constitution. The union’s president, Festus Osifo, said the order effectively sets aside existing law and could undermine legal certainty in Nigeria’s oil and gas sector.
Osifo emphasised that executive orders cannot override an Act of the National Assembly, warning that the decision sends a troubling message to investors about Nigeria’s regulatory environment. He said the move could trigger capital flight, weaken stakeholder confidence, and jeopardise long-term investment commitments in the industry.
The Executive Order, signed on February 13 and announced on February 18, mandates that all revenue generated from royalty oil, tax oil, profit oil, profit gas, and similar streams now flow directly to the Federation Account. It also abolishes NNPC’s entitlement to the 30 % management fee and frontier exploration funds previously permitted under the PIA.
PENGASSAN has warned that the abrupt shift could strain NNPC’s financial capacity, potentially risking thousands of jobs and operational stability if the company struggles to meet its obligations to staff and contractors. The union says it was not consulted before the order was issued, and had expected industry changes to come through legislative amendment rather than executive fiat.
In response to the push-back, PENGASSAN has begun consultations with other labour groups and industry stakeholders to determine next steps if the government fails to reconsider or withdraw the order.
