Executive Order 9 will Undermine PIA, Threatens Oil Sector Stability – PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria has warned that the Federal Government’s Executive Order No. 9 of 2026 will undermine the Petroleum Industry Act and threaten stability in the oil and gas sector, describing the directive as a direct challenge to the existing legal framework guiding the industry.

Speaking at the union’s National Executive Council meeting in Abuja, PENGASSAN President, Festus Osifo, said key provisions of the order, especially the directive that 30 per cent of profit oil from Production Sharing Contracts be paid directly into the Federation Account, could disrupt operations within Nigerian National Petroleum Company Limited and put workers’ welfare at risk.

“From our own assessment, the provisions of this order is a direct attack on the PIA. If government wants to amend laws, send those laws to the National Assembly. Let stakeholders debate it. The way this executive order has been done has the ability to impact the stability we currently enjoy in the oil and gas industry,” Osifo said.

He expressed concern that transferring the 30 per cent profit oil allocation to the Federation Account Allocation Committee without clearly stating how the statutory management fee would be refunded to NNPC Ltd. could affect the salaries of hundreds of union members who administer the PSCs.

“That 30 per cent of profit oil amounts to between 1.5 and 2.5 per cent of total revenue. It is the management fee used to pay salaries of those administering the PSCs. There are comrades interfacing daily with Shell, TotalEnergies, ExxonMobil and other operators, ensuring that Nigeria is not cheated. How will their salaries be paid?” he queried.

Osifo said the union had begun engagements with government officials, including the Presidential Implementation Committee, and expressed optimism that common ground would be reached.

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“For us, there is no hidden agenda. We don’t politicise issues. We look at how these issues will affect our members first, the industry next, and Nigerians at large..From the engagements so far, there are green lights and we believe we will be able to close the gap.”

The labour leader also painted a grim picture of the broader economy, arguing that recent claims of declining inflation did not reflect the harsh reality facing Nigerians.

“When they say inflation is reducing, it is year-on-year comparison. If a product moved 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 has rising foreign reserves translated to food on the table? How has exchange rate stability improved disposable income of the average worker?”

Osifo noted that oil and gas workers bear heavy social responsibilities beyond their nuclear 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.

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On insecurity, the PENGASSAN president said government must prioritise technology and adequate funding to curb violence across the country.

“We are in a state of emergency in terms of insecurity,” he declared. “Reduce plenty talk and focus on solutions. Devote more funds to security. Nigerian lives must count.”

He urged federal and state governments to invest heavily in infrastructure and electricity, describing power supply as “the backbone of development.”

“Now that power generation has been decentralised and moved to the concurrent list, state governments no longer have excuses. Electricity must be resolved if Nigeria wants to grow in leaps and bounds.”

Speaking further, Osifo disclosed that unresolved labour issues persist at the Dangote Group refinery, urging swift 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.”

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The labour leader however welcomed the growing rig count and improved security along crude oil pipelines, noting that this had boosted production and government revenue.

“When you remove your eyes from the ball, things can go wrong immediately. Government must sustain pipeline security because beyond revenue, it secures our members’ jobs,” he said.

The union also renewed its long-standing advocacy for adopting the Nigeria LNG Limited model in the management of state-owned refineries, calling for 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.” He said

Osifo called for sustained dialogue with the Federal Government to safeguard jobs and ensure stability in Nigeria’s oil and gas sector.