PENGASSAN Urges Tinubu to Reverse Executive Order on Oil Revenue Remittance

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has formally appealed to Bola Tinubu to withdraw and review a controversial executive order that removes the power of Nigerian National Petroleum Company Limited (NNPC Limited) to deduct certain revenues before remitting funds to the Federation Account.

The executive order, signed on February 18, directs that all oil and gas revenues be paid directly into the Federation Account Allocation Committee (FAAC). The policy shift has sparked intense debate across the oil and gas industry, with supporters describing it as a bold reform to block leakages, while critics argue it contradicts existing laws and could unsettle investors.

Speaking at a press briefing on Thursday, PENGASSAN’s national president, Festus Osifo, described the executive order as a “direct attack” on the Petroleum Industry Act (PIA), the landmark legislation enacted after years of deliberation by the National Assembly to reform Nigeria’s oil and gas sector.

According to Osifo, specific provisions of the PIA—particularly Sections 8, 9, and 64—clearly define NNPC Limited’s operational and financial framework, including how revenues are managed. He argued that by issuing an executive order that effectively alters these provisions, the president has set aside an existing law of the Federal Republic of Nigeria without legislative amendment.

“The executive order signed by the president is a direct attack on the PIA,” Osifo said. “Executive orders cannot supersede the law of the land. If a law is to be changed, it must be amended by the National Assembly.”

While acknowledging that the president has constitutional powers to issue executive orders and a duty to safeguard national interests, the PENGASSAN leader suggested that President Tinubu may have been misinformed about the implications of the decision. He maintained that the president, given his track record of pursuing reforms and attracting investment into the oil and gas industry, would not have approved the order in its current form if fully briefed.

Osifo further warned that the policy could undermine investor confidence at a time when Nigeria is competing globally for scarce energy capital. He noted that international oil companies rely on the stability and predictability of the PIA, and any perception that its provisions can be overridden by executive fiat may raise fears that royalties, fiscal terms, or contractual protections could be altered unilaterally.

To illustrate his concerns, Osifo likened the situation to a hypothetical scenario in which the president issues an executive order to suspend the Independent National Electoral Commission or drastically alter pension contributions—actions that would provoke widespread alarm and legal challenges.

“If this executive order is not recalled,” Osifo cautioned, “our members are in danger of being declared redundant because NNPC Limited may no longer be able to meet its statutory and operational obligations.”

The executive order has sharply divided public opinion. Supporters argue that it aligns with constitutional provisions requiring all federally collected revenues to be paid into the Federation Account, thereby improving transparency and curbing waste within NNPC Limited. Critics, however, insist that due process must be followed and that any conflict between the constitution and the PIA should be resolved through the courts or legislative amendments—not executive directives.

As the debate intensifies, legal experts, industry stakeholders, and lawmakers are expected to weigh in on the matter. Whether President Tinubu will heed PENGASSAN’s call and review the executive order remains to be seen, but the controversy has once again highlighted the delicate balance between reform, legality, and investor confidence in Nigeria’s critical oil and gas sector.