The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that policy instability continues to erode investor confidence and stall growth in Nigeria’s oil and gas sector.
Frequent Policy Shifts Undermine Investment
Speaking at the opening of the 4th Petroleum and Energy Advancement and Leadership Summit (PEALS 2025) in Abuja, PENGASSAN President Festus Osifo said repeated amendments to key legislation, particularly the Petroleum Industry Act, have created uncertainty for investors.
He stressed that businesses require stability to commit capital to long-term projects. “Amendments are inevitable but must not be haphazard or intermittent. Businesses need stable policies for long-term planning, job protection, and sustainable production,” Osifo stated.
Tinubu’s Executive Orders Offer Relief
While highlighting the dangers of erratic legislative changes, Osifo commended recent executive orders signed by President Bola Tinubu to boost crude output, accelerate gas development, and streamline contracting. He described these directives as steps in the right direction, noting that clear frameworks attract capital and reduce operational delays.
Safety and Labour Remain Non-Negotiable
Turning to workforce issues, Osifo emphasised strict adherence to safety standards across offshore and onshore operations. He cited the 2024 helicopter crash near Bonny, which claimed three union members, as a reminder that “no job is worth a life.” He called for stronger training programmes, transparent incident reporting, and better health and welfare measures for workers.
Minister of Labour and Employment, Muhammad Dingyadi, echoed the point, urging companies to embed health and safety as “non-negotiable pillars” of a resilient energy system.
Environmental Responsibility Gains Urgency
Osifo also demanded an end to gas flaring, cleanup of polluted communities, and stronger accountability for operators. He stressed that Environmental, Social, and Governance (ESG) standards now shape global competitiveness and must stand alongside financial reporting.
“ESG compliance is no longer optional—it defines access to capital and international partnerships,” he said.
Industry Leaders Call for Collaboration
In his remarks, NNPCL Group CEO Bayo Ojulari praised PENGASSAN’s role in aligning labour with government and industry. He argued that innovation, collaboration, and safety are essential to building a globally competitive sector.
Minister Dingyadi added that Nigeria must lead, not just follow, the global transition to cleaner energy, urging unions to pursue constructive dialogue while government agencies streamline regulations to balance investor confidence with labour welfare.
Outlook
Stakeholders agreed that sustaining oil and gas investments requires stable policies, transparent governance, and strict ESG compliance. Analysts note that without consistency, Nigeria risks losing capital inflows to competing African and global producers.