Abuja, February 20, 2026 — The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has rejected President Bola Tinubu’s recent Executive Order on oil and gas revenue remittance, describing it as a “dangerous precedent” that could undermine the Petroleum Industry Act (PIA) and weaken investor confidence in Nigeria’s energy sector.
Speaking at a press conference, PENGASSAN President Festus Osifo urged the President to immediately withdraw the directive, arguing that an executive order cannot override an existing law enacted by the National Assembly.
“An executive order cannot set aside a properly enacted Act of Parliament,” Osifo said, warning that altering the fiscal and governance structure of the oil sector through executive action could create regulatory uncertainty.
Core of the Dispute
The Executive Order, signed earlier this month, directs that certain oil and gas revenues — including funds previously retained under specific PIA provisions — be remitted directly to the Federation Account. The presidency says the move is aimed at eliminating revenue leakages, removing duplicative deductions, and strengthening transparency in the sector.
However, PENGASSAN contends that the directive directly targets provisions embedded in the PIA, a comprehensive reform law passed in 2021 after nearly two decades of legislative debate.
According to Osifo, any structural changes affecting fiscal terms, revenue allocation, or institutional roles under the PIA must be pursued through legislative amendment rather than executive fiat.
Investor Confidence Concerns
The union warned that abrupt policy shifts could send negative signals to international and domestic investors, particularly in an industry where long-term capital commitments depend on regulatory stability.
Energy analysts note that Nigeria’s oil and gas sector has historically struggled with policy reversals, delayed reforms, and contractual uncertainty — factors that have affected foreign direct investment flows.
PENGASSAN argued that maintaining predictability under the PIA is critical at a time when Nigeria is seeking to boost production, expand refining capacity, and attract upstream investment.
Government Position
The Presidency has defended the Executive Order as constitutionally grounded and necessary to restore revenue flows to the Federation Account, citing concerns over excessive deductions and structural overlaps under the current framework.
Officials maintain that the reforms are intended to strengthen fiscal sustainability, improve transparency, and ensure oil revenues benefit all tiers of government.
What Comes Next
The dispute raises potential constitutional and legal questions that may ultimately require judicial interpretation or legislative clarification.
As the debate unfolds, stakeholders across the oil and gas industry will be watching closely to see whether dialogue, amendment, or litigation shapes the final outcome — and what it means for Nigeria’s broader energy reform agenda.