The leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria has announced plans to meet with the Presidential Implementation Committee regarding Executive Order 9, recently signed by President Bola Tinubu.
PENGASSAN has raised concerns that the order could destabilize the oil and gas sector, describing it as a “direct attack” on the Petroleum Industry Act.
Speaking at the union’s National Executive Council meeting in Abuja on Tuesday, PENGASSAN President Comrade Festus Osifo highlighted that certain provisions, particularly the directive to remit 30 per cent of profit oil from Production Sharing Contracts directly to the Federation Account—could disrupt operations at the Nigerian National Petroleum Company Limited and threaten workers’ welfare.
Addressing circulating rumours of imminent protests, Osifo reassured that no demonstrations are planned despite widespread anxiety over the executive order’s potential impact on the livelihoods of 10,000 senior staff members at NNPC.
He emphasized that the union has already begun discussions with government officials, including the Presidential Implementation Committee, and expressed optimism for a resolution.
“We are a senior staff association, and we are a very reasonable group. Normally, when such issues arise, we hold a press conference to draw the government’s attention, followed by engagements. That is exactly what we have been doing. We engaged on Sunday and yesterday (Monday). We will continue with a meeting of the Presidential Implementation Committee on Executive Order 9 on Wednesday to raise our concerns,” Osifo said.
He added, “For us, there is no hidden agenda. We don’t politicise issues. We focus first on how they affect our members, then the industry, and Nigerians at large. From the engagements so far, there are green lights, and we believe we can close the gap.”
Osifo argued that the executive order undermines the PIA and should instead have been debated in the National Assembly.
“From our assessment, the provisions of this order are a direct attack on the PIA. If the government wants to amend laws, it should send them to the National Assembly for stakeholders to debate. The way this executive order was issued could undermine the stability we currently enjoy in the oil and gas industry,” he said.
The union leader also warned that diverting 30 per cent of profit oil to the Federation Account Allocation Committee, without clarity on how the statutory management fee would be refunded to NNPC Ltd., could jeopardize the salaries of hundreds of PENGASSAN members.
“That 30 per cent of profit oil amounts to between 1.5 and 2.5 per cent of total revenue. It funds the management fee used to pay salaries for those administering the PSCs. There are comrades interfacing daily with Shell, TotalEnergies, ExxonMobil, and other operators to ensure Nigeria is not shortchanged. How will their salaries be paid?” Osifo asked.
On the broader economy, Osifo noted that claims of declining inflation do not reflect the reality for Nigerians.
“When they say inflation is reducing, it’s a year-on-year comparison. If a product moves from N5,000 to N10,000, and the next year it rises to N10,200, they celebrate that inflation has dropped. But the real issue is that prices have already doubled. Nigerians are still feeling the heat in their pockets. How have rising foreign reserves put food on the table? How has exchange rate stability improved the disposable income of the average worker?”
He also highlighted the social responsibilities of oil and gas workers, beyond supporting their immediate families.
“We are responsible for our communities and villages. When anything goes wrong, we are the first point of call. So when the economy works, it must work for every individual,” he said.
On the issue of insecurity, Osifo urged the government to prioritize technology and adequate funding to curb violence across the country.
“We are in a state of emergency in terms of insecurity. Reduce the plenty of talk and focus on solutions. Devote more funds to security. Nigerian lives must count.”
He further called for greater investment in infrastructure and electricity, noting that reliable power is “the backbone of development.”
“Now that power generation has been decentralised and moved to the concurrent list, state governments have no excuses. Electricity must be resolved if Nigeria wants to grow in leaps and bounds,” Osifo said.
The PENGASSAN president also drew attention to unresolved labour issues at the Dangote Group refinery, urging prompt intervention by the Federal Ministry of Labour and security agencies.
“We felt by now the issues should have been resolved, but they are still lingering. Efforts must be intensified as soon as possible,” he said.
Osifo welcomed the increasing rig count and improved security along crude oil pipelines, which have boosted production and government revenue.
“When you take your eyes off the ball, things can go wrong immediately. Government must sustain pipeline security because, beyond revenue, it secures our members’ jobs,” he said.
The union reiterated its long-standing call for adopting the Nigeria LNG Limited (NLNG) model in managing state-owned refineries, advocating majority private sector ownership to ensure efficiency and shield operations from political interference.
“What we have advocated for over 20 years is the NLNG model: 51 per cent private ownership and 49 per cent government to maintain energy security. When refineries are working before privatisation, their valuation will be much higher,” Osifo said.
He concluded by emphasizing the need for continuous dialogue with the Federal Government to protect jobs and maintain stability in Nigeria’s oil and gas sector.
