Nigeria Oil Union Warns Tinubu Decree Risks Jobs, Investment Stability
Oluwafunbi Bello 
PENGASSAN President Festus Osifo
ABUJA, Nigeria – The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) issued a stark warning that a presidential order redirecting petroleum revenues threatens jobs, investor confidence and the stability of Africa’s largest energy industry.
The association urges the Federal Government to submit any changes to petroleum revenue laws to Parliament, arguing that executive action weakens the legal foundations of the Petroleum Industry Act (PIA).
Speaking at the union’s National Executive Council meeting in Abuja on Tuesday, PENGASSAN President Festus Osifo says Executive Order 9, signed by Bola Tinubu on 13 February, risks disrupting joint venture funding models.
“Amending core petroleum laws by executive order undermines transparency, investor confidence and long-term sector sustainability,” Osifo tells journalists.
The order mandates that all petroleum revenues — royalties, taxes and profit oil — flow directly into the Federation Account, a move the presidency says curbs leakages. PENGASSAN counters that existing statutory arrangements already govern revenue management and operational funding.
Osifo warns that salary payments, management fees and operational budgets tied to profit-oil structures may face delays, with knock-on effects for workers and contractors.
He adds that uncertainty could deter foreign investment, weaken foreign exchange inflows and worsen inflation pressures on households.
Despite the warning, the union signals openness to dialogue. Osifo confirms ongoing engagements with government officials and an upcoming appearance before the Presidential Implementation Committee.
The dispute highlights a deeper tension between rapid executive-led economic reforms and legislative safeguards designed to reassure long-term investors in Nigeria’s oil sector.
With Nigeria struggling to meet OPEC quotas amid theft and underinvestment, labour leaders caution that policy instability risks compounding existing challenges.
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