PENGASSAN Urges Stakeholder Engagement for Oil Sector Stability

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged sustained multistakeholder dialogue following the federal government’s executive order restructuring oil and gas revenue remittances, warning that policy consistency is critical for the sector’s stability.

The union’s president, Festus Osifo, addressed journalists in Lagos on Thursday, emphasizing that the executive order requires careful engagement to maintain investor confidence and operational stability in Nigeria’s vital oil and gas industry. He stressed that the sector remains central to the nation’s economic health, contributing the majority of foreign exchange earnings and government revenue.

Osifo highlighted the importance of the Petroleum Industry Act (PIA), enacted in 2021, which was intended to provide long-awaited regulatory clarity and fiscal transparency after years of underinvestment. “We worked with stakeholders and legislators to ensure a law that would stabilise the industry and incentivise global investment,” he stated. However, he noted that the sector now faces intense global competition for capital, making policy predictability essential for Nigeria to remain an attractive investment destination.

According to PENGASSAN, any administrative or fiscal changes must align with the overarching framework of the PIA to avoid undermining the progress achieved. The association linked sector stability directly to job security and livelihoods across the entire value chain. “When the industry grows, jobs are protected and the broader economy benefits,” Osifo added.

He called for continued collaboration among the government, regulators, operators, and labour unions to preserve growth momentum and operational efficiency. The union argued that fragmented or abrupt policy shifts could deter investment, jeopardizing not only immediate revenue but also Nigeria’s long-term energy security and economic diversification goals.

PENGASSAN’s plea underscores the delicate balance between sovereign revenue management and sustaining a competitive business environment. As Africa’s largest oil producer, Nigeria’s ability to maintain a stable, investor-friendly framework under the PIA is widely seen as a barometer for its broader economic resilience. The association’s statement signals that organized labour will actively monitor implementation of the executive order, advocating for a consultative approach that safeguards the sector’s future and the national interest.