The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged President Bola Tinubu to withdraw and review his recent executive order mandating the direct remittance of oil and gas revenues to the federation account, describing the directive as a violation of the Petroleum Industry Act (PIA).
President Tinubu had, on February 18, signed an executive order requiring that all revenues from oil and gas be paid directly into the federation account allocation committee (FAAC), effectively removing the Nigerian National Petroleum Company (NNPC) Limited’s power to deduct operational costs and statutory obligations before remittance.
Addressing journalists in Abuja, PENGASSAN president Festus Osifo said the decision amounts to a “direct attack” on the PIA, which redefined NNPC’s role as a limited liability company independent of direct government control.
Osifo warned that implementing the order without consultation could destabilize the oil and gas sector, hinder operational efficiency, and discourage international investment. He urged the president to recall and review the order in line with the provisions of the PIA and in consultation with industry stakeholders.
He further noted that while the government’s effort to ensure accountability in revenue management is commendable, such reforms must uphold the sanctity of existing laws to sustain the confidence of investors and workers in the industry.
