The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged President Bola Tinubu to immediately withdraw the recent executive order mandating the direct remittance of oil and gas revenues to the Federation Account Allocation Committee (FAAC), describing the directive as a violation of the Petroleum Industry Act (PIA).
The President had, in February, signed an executive order stripping the Nigerian National Petroleum Company Limited (NNPC) Limited of its powers to deduct oil revenues at source before remitting to FAAC.
Addressing journalists on Thursday, PENGASSAN National President, Festus Osifo, characterised the directive as “a direct attack” on the PIA, particularly Sections 8, 9 and 64 of the Act.
“The executive order signed by the President is a direct assault on the PIA,” Osifo said. “An executive order cannot override the provisions of an existing law duly enacted by the National Assembly.”
He argued that the President, by issuing the directive, had effectively set aside a law of the Federal Republic of Nigeria through executive fiat, warning that such a move could undermine investor confidence in the oil and gas sector.
While acknowledging the President’s constitutional powers to issue executive orders, Osifo maintained that such powers must not conflict with extant legislation.
“We believe Mr President may not have been fully briefed on the far-reaching implications of this order,” he said, adding that Tinubu’s background in the oil industry and his previous experience at ExxonMobil would ordinarily incline him to protect, rather than weaken, the regulatory framework designed to attract investment.
Osifo warned that allowing the executive order to stand could send negative signals to both local and international investors, who may fear that the government could alter fiscal and regulatory terms through administrative directives.
He likened the development to a hypothetical scenario in which the President issues an executive order setting aside the Independent National Electoral Commission (INEC) or arbitrarily reducing statutory pension contributions, stressing that executive actions cannot supersede statutory provisions.
Describing the order as “troubling” and “an aberration,” the PENGASSAN leader cautioned that failure to recall it could have severe implications for workers in the sector.
“If this order is not withdrawn, our members risk being declared redundant, as NNPC may be unable to meet its obligations,” he warned.
The union called on the Presidency to review the directive and align any fiscal reforms with the framework established under the Petroleum Industry Act to preserve stability and investor confidence in Nigeria’s oil and gas industry.
