The Petroleum and Natural Gas Senior Staff Association of Nigeria ( PENGASSAN ) has called on President Bola Tinubu to immediately withdraw a recent executive order directing the Nigerian National Petroleum Company (NNPC) Limited to remit oil and gas revenues directly to the Federation Account Allocation Committee (FAAC).
The president signed the executive order on February 18, mandating the direct transfer of oil and gas earnings to FAAC, effectively removing NNPC Limited’s previous authority to deduct certain revenues before remittance.
Speaking at a press briefing on Thursday, PENGASSAN National President Festus Osifo described the directive as a serious violation of the Petroleum Industry Act (PIA). According to him, specific provisions of the Act, particularly sections 8, 9, and 64, are being undermined by the executive order.
Osifo argued that an executive order cannot override an existing law enacted by the National Assembly. He maintained that while the president has the constitutional authority to issue executive orders, such directives must not contradict statutory legislation.
He urged the president to review the decision, insisting that it may have been taken without full disclosure of its implications. Osifo said the order appears inconsistent with Tinubu’s broader efforts to attract both domestic and foreign investment into Nigeria’s oil and gas sector.
The PENGASSAN leader suggested that, given the president’s background in the energy industry and prior experience in the private sector, he would likely have reconsidered signing the order if properly briefed on its legal and economic consequences.
Describing the move as “troubling” and an “aberration,” Osifo warned that it could send negative signals to investors who rely on the stability of the PIA framework. He cautioned that international stakeholders might begin to question the security of their investments if executive directives are perceived to override established laws.
He further warned that failure to recall the order could affect NNPC Limited’s financial stability and its ability to meet obligations to workers, raising concerns about potential job losses within the sector.
PENGASSAN has therefore called for an urgent reconsideration of the directive to ensure alignment with the Petroleum Industry Act and to preserve investor confidence in Nigeria’s oil and gas industry.
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