Amanze Chinonye
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has mounted strong opposition to President Tinubu’s executive directive altering the remittance structure of oil and gas revenues, cautioning that the move could disrupt the financial stability of the Nigerian National Petroleum Company Limited (NNPC Ltd.) and threaten workers’ jobs, Prime Business Africa reports.
The presidential order, signed on February 18, mandates the direct payment of proceeds from crude oil and gas including royalty oil, tax oil, profit oil and profit gas into the Federation Account Allocation Committee (FAAC). By doing so, it withdraws NNPC Limited’s authority to deduct operational expenses before remitting revenues, a framework previously provided under the Petroleum Industry Act (PIA).
Government officials have defended the directive as a fiscal reform designed to block revenue leakages, improve transparency and guarantee full statutory allocations to federal, state and local governments.
Join our WhatsApp ChannelBut addressing journalists on Thursday, PENGASSAN President Festus Osifo argued that the order undercuts the legal foundation of the PIA, which restructured NNPC into a commercially driven limited liability company with defined financial independence.
According to Osifo, the withdrawal of cost-deduction powers could leave the company financially constrained, impairing its ability to fund operations and meet salary obligations.
“Our members face the risk of redundancy if NNPC cannot fulfil its financial commitments,” he said, warning that workers could bear the brunt of the policy shift.
He referenced Sections 8, 9 and 64 of the PIA, which outline NNPC Limited’s financial and operational autonomy, insisting that executive orders cannot override legislation enacted by the National Assembly.
READ ALSO : Tinubu Signs Executive Order Redirecting Oil, Gas Revenues to Federation Account
Describing the development as an “assault” on the PIA, the union leader maintained that any alteration to the Act’s fiscal structure must follow constitutional legislative procedures rather than executive action.
Beyond labour concerns, PENGASSAN warned that the directive could unsettle investor confidence in Nigeria’s oil and gas industry. The union said abrupt changes to a legal framework designed to provide certainty may raise doubts among domestic and foreign investors about the durability of reforms introduced under the PIA.
Osifo further noted that stakeholders had previously been led to believe that adjustments to the revenue framework would be pursued through formal amendments to the Act, not through executive fiat. He suggested the president may not have been fully apprised of the potential ripple effects of the order on sector stability and investment flows.
The controversy has reignited debate within the industry over the appropriate balance between maximising revenue remittance to the federation and preserving the commercial autonomy granted to NNPC Limited under the PIA reform regime.
As of the time of filing this report, there has been no official indication from the presidency that the executive order will be withdrawn or modified, despite the union’s call for reconsideration.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
