Frequent changes to Nigeria’s petroleum regulatory framework could weaken investor confidence and threaten fresh capital inflows into the oil and gas industry, the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has warned.
PENGASSAN President, Comrade Festus Osifo, raised the concern in Abuja at the fifth PENGASSAN Energy and Labour Summit, PELS, where he called for a predictable, transparent and efficient regulatory system. He said the Petroleum Industry Act, PIA, 2021, was a major milestone in the country’s long-running effort to reform the sector, but warned that subsequent alterations to its provisions could create uncertainty for investors making long-term capital commitments.
Osifo specifically criticised the removal of some fiscal provisions from the PIA and their transfer to the Nigeria Revenue Act, as well as the use of an executive order to amend provisions of the petroleum law. “These do not instil confidence or promote stability. Instead, they amplify uncertainty and disruption,” he said, stressing that oil and gas investments often require decades to recover capital.
He also warned that overlapping responsibilities among regulatory agencies could increase project costs and delay developments through repeated approvals, inspections and conflicting directives. “What we require is not weak regulations. What we need is smarter regulations. Regulations that understand commercial realities, embrace technology and eliminate unnecessary duplication,” Osifo said, while insisting that stronger enforcement must accompany regulatory reform, particularly in health and safety, environmental protection, local content and operational standards.
The PENGASSAN president further demanded stronger protection for Nigerian workers during acquisitions and divestments, saying changes in ownership of oil and gas assets should not undermine jobs, pensions or collective bargaining rights. “Licences and assets may change hands, but workers are not commodities to be discarded at will. When major acquisitions and divestments occur, jobs, pensions, collective bargaining agreements and other established rights of workers must be protected,” he said.
Osifo also called for stricter enforcement of local content rules in the employment of expatriates, arguing that foreign personnel should only be engaged where genuine skills gaps exist. He said expatriate approvals should include succession plans, understudy arrangements and measurable knowledge transfer. “We cannot breach local content in procurement while neglecting local content in employment and human capital development,” he said.
On production, he urged Nigeria to go beyond recovering lost crude output by attracting fresh investment, developing new reserves and expanding gas utilisation, domestic refining, LPG, CNG and LNG infrastructure. “Resources beneath the ground create little value until investments are made to make them usable,” he said, noting that greater gas development could support power generation, petrochemicals, fertiliser production, transport and industrialisation.
Osifo called for closer cooperation among government, regulators, operators and labour to create an industry capable of attracting investment, increasing production and protecting workers. “Without investment, there will be no project. Without projects, there will be no sustainable jobs. Without production, there will be no revenue. And without fairness and stability, none of these can endure,” he said.