Fresh tension is brewing in Nigeria’s oil and gas industry as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) warns that Executive Order No. 9 of 2026 could destabilise the sector. The union insists that key provisions of the order pose a direct threat to the stability achieved under the Petroleum Industry Act (PIA).
Speaking at the union’s National Executive Council meeting in Abuja, PENGASSAN President Festus Osifo cautioned that the directive to remit 30 per cent of profit oil from Production Sharing Contracts to the Federation Account may disrupt operations at the Nigerian National Petroleum Company Limited (NNPC Ltd.) and endanger workers’ welfare.
‘Direct Attack on the PIA’
Osifo did not mince words.
“From our own assessment, the provisions of this order is a direct attack on the PIA. If the 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.”
He explained that the 30 per cent profit oil allocation amounts to between 1.5 and 2.5 per cent of total revenue and serves as the statutory management fee used to administer PSC operations.
“There are comrades interfacing daily with Shell, TotalEnergies, ExxonMobil and other operators, ensuring that Nigeria is not cheated. How will their salaries be paid?”
Call for Dialogue, Economic Concerns
Although the union has begun engagements with government officials, Osifo stressed that dialogue remains critical to safeguard jobs and prevent unintended consequences.
“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.”
Beyond the executive order, the labour leader also raised concerns about inflation, insecurity and infrastructure deficits. He urged the government to prioritise electricity, sustain pipeline security and intensify efforts to resolve lingering labour issues at the Dangote refinery.
While welcoming the rising rig count and improved crude pipeline security, PENGASSAN maintained that policy consistency and proper stakeholder consultation remain essential to sustaining growth in Nigeria’s oil and gas industry.