The Petroleum and Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President Bola Tinubu to rescind the recently signed Executive Order on the oil and gas sector, warning that the move could undermine the stability of the industry and erode investor confidence in Nigeria’s petroleum regulatory framework.
Addressing a press conference in Lagos, PENGASSAN President, Festus Osifo, described the Executive Order—gazetted last Wednesday—as a troubling development that could send negative signals to both local and international investors.
Osifo said the association was alarmed by the Order, which was introduced as a policy measure to safeguard federation oil revenues and provide regulatory clarity. According to him, while the President has constitutional powers to issue Executive Orders, such directives must not override existing legislation.
He argued that the Order conflicts with key provisions of the Petroleum Industry Act (PIA), particularly Sections 8 and 64, stressing that an Executive Order cannot supersede an Act of the National Assembly.
“This is a direct affront to the PIA,” Osifo said. “What signal are we sending to investors and the international community if a law painstakingly enacted to stabilize the industry can be set aside through an Executive Order?”
The union recalled its active involvement during the formulation of the PIA, noting that the law was designed to provide long-term regulatory certainty, incentivize investment, and reposition Nigeria as a competitive oil and gas destination.
Osifo acknowledged that no legislation is perfect, but maintained that the PIA established a framework that brought relative stability and predictability to the sector. He warned that any action perceived as undermining the law could discourage international oil companies and indigenous operators, who prioritize regulatory certainty in making investment decisions.
PENGASSAN further stated that it believes the President may not have been fully briefed on the implications of the Order before signing it. The association expressed confidence that President Tinubu, known for engaging global investors, would reconsider the decision if presented with the full facts.
“Our interest is to ensure the survival and growth of the industry that has sustained Nigeria’s economy for over five decades,” Osifo said. “When the industry thrives, jobs are protected, and the economy benefits.”
The union cautioned that overriding statutory provisions through executive instruments could create uncertainty about the sanctity of Nigeria’s legal and constitutional order, potentially damaging the country’s credibility in the global investment community.
PENGASSAN therefore urged the federal government to review and withdraw the Executive Order in order to preserve the integrity of the PIA and sustain investor confidence in the oil and gas sector.
