Abuja — President Bola Ahmed Tinubu has been urged by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to reverse his executive order that requires oil and gas revenue to be paid directly to the Federation Account, as the action poses a threat to existing law and jobs in the sector.
During a briefing with the newsmen on Thursday in Lagos, the president of the union, Festus Osifo said the executive order clashes with sections of the Petroleum Industry Act (PIA), stating that an executive instrument “can not override the law of the land” and that the change in the fiscal system of the sector must follow legislative measures.
Osifo warned that the executive order, which stops the deductions that have formerly been used by the Nigeria National Petroleum Company Limited (NNPC) before transferring earnings to the government, will lead the state oil firm into financial distress and potentially result in about 4,000 job losses as well as impact its obligation commitments.
He also pointed out that the order can shake the investor confidence in Nigeria’s oil and gas sector because it implies that legal protection would not be as secure, and there would be instability and lack of regulatory consistency in the industry that was established by the PIA.
The union said it was bewildered at the executive order because the association thought amendments would be proposed via an executive bill that would have the backing of stakeholders, rather than an executive decree. The union said it will consult with labor stakeholders as well as industry associations to make further decisions while calling on the government to reverse the action.