By Adeyemi David
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has strongly opposed President Bola Tinubu’s Executive Order directing the Nigerian National Petroleum Company Limited (NNPC) Limited to remit oil and gas revenues directly into the Federation Account.
At a press conference in Lagos on Thursday, PENGASSAN President, Festus Osifo, described the order as a violation of the Petroleum Industry Act (PIA) and the Constitution, warning that it sends a troubling signal to global investors about the sanctity of Nigeria’s laws.
Osifo argued that the Executive Order effectively sets aside an existing Act of Parliament that took more than two decades to enact, stressing that the President lacks the constitutional authority to override legislation through executive instruments.
“This order sends a troubling signal to the global investment community that Nigeria cannot be trusted to keep its laws,” Osifo said.
“Investment in oil and gas is capital-intensive. Investors need stability, predictability and assurance that the legal framework protecting their investments will not be arbitrarily altered.”
The union warned that the directive could trigger capital flight, erode investor confidence and lead to job losses across the oil and gas value chain.
According to Osifo, international oil companies may reconsider long-term commitments in Nigeria if regulatory certainty is undermined.
He further alleged that the President may have been misadvised by close associates into taking a step capable of reversing gains achieved under the PIA, which restructured the petroleum industry and commercialised NNPC Limited.
PENGASSAN said it has commenced consultations with its sister union, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), while its National Executive Council is scheduled to meet next week to determine further action if the government fails to withdraw the order.
President Tinubu’s Executive Order, signed on February 13 and publicly announced on February 18, 2026, mandates that all oil and gas revenues including royalties, taxes, profit oil and profit gas be paid directly into the Federation Account, rather than being retained by NNPC under deductions previously allowed by the PIA.
The order removes NNPC’s entitlement to a 30 per cent management fee on profit oil and profit gas and its 30 per cent frontier exploration fund. It also seeks to curb what the government describes as wasteful and duplicative deductions, with the aim of restoring full constitutional revenue entitlements to federal, state and local governments.
According to the Federal Government, the reform is intended to enhance transparency, reduce fiscal leakages in the petroleum sector and boost funds available for public services and national development.
It also provides for the establishment of oversight committees to supervise implementation, while a broader review of the PIA is planned.
The development sets the stage for heightened tension in the oil sector, as labour unions warn of possible escalation if dialogue and stakeholder engagement are not prioritised.
