The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that regulatory uncertainty, overlapping mandates and slow approval processes could undermine investment and further weaken Nigeria’s oil and gas industry.
PENGASSAN President, Festus Osifo, raised the concern on Wednesday at the fifth PENGASSAN Energy and Labour Summit (PEALS) 2026 in Abuja, urging the Federal Government to make regulatory efficiency a priority in efforts to attract fresh capital into the sector.
The summit, themed “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” brought together government officials, regulators, operators and labour leaders.
Osifo said Nigeria’s oil and gas industry could not compete effectively for global capital if investors continued to face unpredictable policies, lengthy approval processes and regulatory overlaps.
According to him, investors compare countries based on fiscal terms, regulatory certainty, project timelines, operating costs and the overall ease of doing business.
“Capital is mobile, and investors will naturally gravitate toward jurisdictions where there are clarity and efficiency.
Our processes must therefore be clear and our systems efficient,” he said.
He warned that delays in approving development plans, final investment decisions and other critical projects could result in lost investment opportunities, jobs and government revenue.
Osifo called for simplified approval procedures and increased use of technology while maintaining strong regulatory oversight, safety and environmental standards.
The PENGASSAN president also linked industrial stability to the ability of Nigeria to attract and retain investment.
He urged oil and gas companies and regulators to protect workers affected by acquisitions, divestments and restructuring, warning against arbitrary job losses and the erosion of workers’ pensions and collective bargaining rights.
“Licences and assets may change hands, but workers are not commodities to be discarded at will,” he said.
He also called for tighter enforcement of expatriate quota rules, saying foreign professionals should only be engaged where genuine skills gaps exist and should be required to facilitate knowledge transfer and succession planning.
Osifo further advocated greater investment in domestic refining, gas processing and LPG, CNG and LNG infrastructure to deepen local value creation.
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Ojulari, urged industry stakeholders to strengthen professionalism, accountability and regulatory discipline.
Ojulari said regulations could only deliver results when effectively implemented by competent and responsible professionals.
“A regulatory framework, however well written, is only as strong as the people who apply it every day,” he said.
He said NNPC Limited was working to create a people-centred organisation where employees would be fairly treated and motivated to deliver stronger performance.
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The Minister of Labour and Employment, Muhammad Dingyadi, said the Federal Government recognised the importance of effective regulation in attracting investment and sustaining growth in the oil and gas sector.
He described strong regulatory frameworks as essential for investor confidence, responsible resource management, workers’ protection and industry competitiveness.
Dingyadi said stable labour relations must form part of efforts to create a predictable business environment, adding that dialogue between workers, employers and government remained critical to preventing industrial disputes.
He urged stakeholders to address regulatory gaps, environmental concerns, energy-transition challenges and local content development.
The summit highlighted the need for Nigeria to move beyond recovering declining production and focus on creating an investment environment capable of unlocking new reserves, increasing production, expanding gas utilisation and creating sustainable jobs.
