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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has officially called for a pause and a legislative rethink regarding the recently signed Executive Order 9 of 2026. Speaking at the National Executive Council (NEC) meeting in Abuja on Tuesday, February 24, 2026, PENGASSAN President Mr. Festus Osifo expressed deep-seated concerns that the new directive, while aimed at transparency, could inadvertently destabilize Nigeria's most vital economic sector. The union is urging the Federal Government to subject the provisions of the order to a formal legislative process through the National Assembly to ensure that the hard-won progress of the Petroleum Industry Act (PIA) 2021 is not undermined by executive fiat.
The Conflict: Executive Order 9 vs. The Petroleum Industry Act (PIA)
Executive Order 9, signed by President Bola Tinubu on February 13, 2026, was designed to centralize oil and gas revenue management. The order mandates that all petroleum revenues—including royalties, taxes, profit oil, and profit gas—be paid directly into the Federation Account. The primary goal of the Presidency is to eliminate "duplicative structures," curb leakages, and restore constitutional revenue entitlements to the federal, state, and local governments.
However, PENGASSAN argues that these changes directly clash with specific fiscal and operational provisions within the Petroleum Industry Act (PIA). Specifically, the order suspends the 30% Frontier Exploration Fund and the 30% management fee previously retained by the Nigerian National Petroleum Company (NNPC) Limited. PENGASSAN asserts that attempting to alter statutory laws via an executive order is a legal "aberration" that threatens the regulatory certainty international investors crave.
Protecting 4,000 Jobs and Worker Welfare
Beyond the legal technicalities, PENGASSAN’s resistance is rooted in the practical survival of its members. Mr. Osifo warned that the sudden redirection of revenue flows could leave NNPC Limited and other key agencies unable to meet their immediate financial obligations.
"If the executive directive remains in place as written, about 4,000 PENGASSAN members' jobs could be at risk. Reduced revenue inflows will undermine the ability of institutions like NNPCL to fund operations, maintain equipment, and guarantee the salaries and welfare of the workforce," Osifo stated.
The union fears that by stripping NNPCL of its retained earnings for working capital, the company’s transition into a fully commercial, independent entity—a core goal of the PIA—will be reversed, effectively pulling it back into the web of state fiscal machinery.
The Risk of Investor Flight and Policy Uncertainty
One of the most significant points raised during the NEC meeting was the potential for "capital flight." The oil and gas industry is capital-intensive and relies on long-term predictability. PENGASSAN argues that shifting the "goalposts" through an executive order sends a signal of instability to global partners.
While other groups like the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have lauded the order as a bold step toward accountability, PENGASSAN remains skeptical. They contend that while seeking more revenue for the federation is a noble goal, the approach could yield less in the long run if it discourages new investments in exploration and production.
The Call for National Assembly Involvement
PENGASSAN’s demand is clear: legislative scrutiny. The union is not necessarily against reform, but it insists that such consequential changes to the nation’s primary revenue generator must be debated openly by lawmakers. Subjecting the proposed amendments to the National Assembly would allow for:
- Proper Debate: Ensuring all stakeholders, including unions and operators, are heard.
- Legal Harmony: Aligning the new directives with the existing Petroleum Industry Act to avoid future litigation.
- Stakeholder Confidence: Providing a permanent, law-backed framework rather than a temporary executive directive.
Conclusion: Balancing Transparency with Stability
As the debate over Executive Order 9 intensifies, the Federal Government finds itself at a crossroads. On one hand is the urgent need to maximize federation revenue and eliminate waste; on the other is the necessity of maintaining the delicate balance of the oil sector's governance. PENGASSAN’s intervention serves as a reminder that reform, however well-intentioned, must follow the rule of law to be sustainable.
The next few weeks will be crucial as the National Assembly and the Presidency consider the union’s plea. For Nigeria to truly benefit from its "Black Gold," the policy must ensure that transparency does not come at the cost of the industry's operational heart.
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